KARACHI:
Pakistan Stock Exchange (PSX) closed Wednesday’s session on a positive note, gaining 464.53 points, or 0.26%, to settle at 180,311.22, as investors returned to equities and made purchases in key sectors.
The benchmark KSE-100 index remained in the black throughout the session, during which it reached the intra-day high of 180,901.27 at midday. The day’s low was 179,920.10 hit in the afternoon. The positive close marked the return of buying interest after the KSE-100 slipped below 180,000 points in the previous session.
Investor interest was particularly observed in oil and gas exploration companies, which provided the strongest support to the index. Automobile assemblers, cement, commercial banks, fertiliser, oil marketing companies and power generation stocks also drew buyers. Market sentiment was supported by expectations of easing geopolitical tensions after Pakistan indicated that the US and Iran were close to an arrangement that could halt the conflict, which was deeply impacting energy markets.
Oil prices rose on Wednesday after attacks on two ships in the Strait of Hormuz and Bab el-Mandeb Strait, heightening fears of disruptions to Middle Eastern supplies. However, the gains in crude prices were tempered by industry data pointing to a build-up in US inventories, which could weigh on the bullish momentum in oil markets.
KTrade Securities, in its market wrap, wrote that the KSE-100 index closed at 180,311, gaining 465 points (+0.26%), as the market staged a modest recovery after recent weakness. Investor participation remained mixed. Oil & gas, cement and power sectors provided support, where Pakistan Oilfields, Mari Energies, Habib Bank and Hub Power were among the key positive contributors. On the other side, selling pressure was visible in Meezan Bank, Engro Fertilisers and Oil & Gas Development Company.
“The market is likely to remain range bound with a cautious bias. Investors are keeping a close watch on oil prices and geopolitical developments alongside domestic macroeconomic and corporate catalysts,” Ktrade said.
According to Arif Habib Limited (AHL), demand returned from below the 180k level with selective stock buying. Fifty-seven shares rose while 43 fell, where Pakistan Oilfields (+3.36%), Mari Energies (+1.85%) and HBL (+1.33%) contributed the most to the index gains. On the flipside, Meezan Bank (-1.41%), Engro Fertilisers (-1.05%) and OGDC (-0.43%) were the biggest index drags.
Among geopolitical developments, Pakistan’s foreign ministry spokesperson Tahir Andrabi stated that the deadline for a US-Iran agreement could be extended. Additionally, Iran and Pakistan agreed on petroleum product exports and the formation of specialised working groups to pursue the long-delayed gas pipeline.
Interior Minister Mohsin Naqvi delivered a “special and important message related to the ongoing situation in the region” from Prime Minister Shehbaz Sharif and Army Chief Asim Munir to the Iranian leadership. AHL anticipated support for the index in the 178-180k zone, from where a rally towards 190k was likely to emerge.
Overall trading volumes decreased to 744.2 million shares against Tuesday’s total of 860.3 million. The value of traded shares stood at Rs32.2 billion.
In the ready market, shares of 491 companies were traded. Of these, 249 stocks closed higher, 211 fell and 31 remained unchanged.
Cnergyico Pk was the volume leader with trading in 67.8 million shares, rising Rs0.27 to close at Rs13.11. Foreign investors sold shares worth Rs32.3 million, the National Clearing Company reported.
