Ahead of the Eidul Azha break, the Pakistan Stock Exchange’s (PSX) benchmark index on Monday rallied more than 3,800 points amid hopes of a deal between the United States and Iran.
The KSE-100 closed at 171,725.29 points, up 3881.05 points from the previous close of 167,844.24 points. The index witnessed an intraday high of 171,920.80 points and an intraday low of 170,161.66 points.
According to topline securities, the market experienced considerable intraday volatility even as investor sentiment staged a strong recovery.
“Investor confidence improved significantly following positive developments over the weekend regarding negotiations between Iran and the US, with reports indicating that discussions may reach a conclusion in the near term. Sentiment was further bolstered by a sharp decline in international oil prices, which fell by nearly $6 per barrel,” it said.
Oil prices also fell on Monday. The price of North Sea Brent crude and West Texas Intermediate slipped close to 5pc to $99.41 and $92.49 a barrel, respectively.
According to Topline, the bullish momentum was primarily driven by heavyweight stocks, including Habib Bank Limited, Fauji Fertilizer Company, United Bank Limited, Engro Holdings, and Lucky Cement, which collectively contributed 1,315 points to the benchmark index and played a key role in sustaining the rally.
“Market participation remained healthy, with total traded volume reaching 506 million shares, while overall turnover settled at Rs31.1 billion. Bank of Punjab emerged as the volume leader, with 27 million shares traded during the session,” it said.
Despite last-minute jitters, the stock market had closed last week in green territory amid improving diplomatic signals surrounding the Middle East conflict, which lifted investor sentiment and encouraged value-hunting across key sectors, pushing the benchmark KSE-100 index above the 167,000-point level.
According to Arif Habib Ltd, the KSE-100 index gained 2,248 points, or 1.36 per cent week-on-week, to settle at 167,844.24 points. The rally was largely driven by expectations of progress in US-Iran talks, with Pakistan reportedly playing a role in facilitating backchannel diplomacy. The development eased concerns over possible oil supply disruptions and supported equity market performance.
Additional input from AFP
