PSX: Buying continues, KSE-100 gains over 1,800 points

Buying momentum continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,800 points on Friday.

The benchmark index opened around the 169,500 level and moved steadily higher during the first half of the session, crossing 170,000 and subsequently testing the 170,700–170,800 range.

After consolidating around those levels, the market witnessed a mild mid-afternoon dip, with the index falling towards 170,400. However, buying interest emerged thereafter, pushing the KSE-100 back towards the intraday high of 171,036.71.

At close, the benchmark index settled at 170,884.58, up by 1,841.39 points or 1.09%.

The bullish momentum was supported by continued weakness in crude oil prices amid easing supply concerns, said Topline Securities in its post-market commentary.

“Market sentiment also improved on expectations of renewed US-Iran diplomatic engagement. Meanwhile, Saudi Arabia’s efforts to restore its damaged East-West pipeline could further ease supply pressures, providing additional support to market sentiment.

“Top positive contribution to the index came from FFC, UBL, MEBL, LUCK and HBL, as they cumulatively contributed 833 points to the index,” it said.

On Thursday, the PSX staged a strong rebound as easing global oil prices and developments suggesting a possible de-escalation in the US-Iran conflict improved investor sentiment and encouraged fresh buying across key sectors. The benchmark KSE-100 Index surged 1,021.40 points, or 0.61%, to close at 169,043.20 points.

Internationally, Asian stocks rose, and the dollar held its ground on ​Friday as investors contended with global policymakers ramping up efforts to rein in inflation, with a dip in oil prices ‌improving sentiment ahead of an expected rate hike from the Bank of Japan.

Monetary policy response is in focus this week as the over six-month-long war in the Middle East shows few signs of ending, keeping oil prices above $100 per barrel and fanning inflation fears across the globe.

Hopes of alternate ways for oil ​supply from the Middle East to reach markets pushed Brent crude futures down 1% to $103.77 a barrel even as concerns ​about strikes between Saudi Arabia and Yemen’s Houthis lingered.

Traders also took their cues from a rally on ⁠Wall Street overnight, led by beaten-down tech stocks. Bond prices steadied after another brutal selloff this week that took the 10-year ​US Treasury beyond 5% to its highest since 2007. It was last at 4.936%.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan ​rose 0.55%. Japan’s Nikkei was 0.9% higher, while tech-heavy South Korea’s KOSPI surged 2%.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Friday. The local unit closed the day at 277.25, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 576.26 million from 386.37 million recorded in the previous close.

The value of shares improved to Rs22.41 billion from Rs20.09 billion in the previous session.

Media Times Ltd was the volume leader with 69.65 million shares, followed by WorldCall Telecom with 33.05 million shares, and Cnergyico PK with 31.35 million shares.

Shares of 496 companies were traded on Friday, of which 351 registered an increase, 110 recorded a fall, and 35 remained unchanged.