PSX recovers 1,500 points on Araghchi’s visit

Stocks staged a strong recovery on Friday as the benchmark KSE-100 index rebounded from early losses, gaining around 1,500 points, with investor sentiment lifted by renewed optimism about potential US-Iran diplomatic engagement.

At the close of trading, the KSE-100 posted a gain of 1,498.66 points, or 0.89%, and settled at 170,672.04.

Arif Habib Limited (AHL) noted that the stock market showed signs of resilience as the benchmark index found strong support in the 165,000-170,000 range, helping trim week-on-week losses to around 1.9%. Sentiment improved during the latter half of the session, particularly after news that Iran’s Foreign Minister Abbas Araghchi is expected to arrive in Islamabad, sparking cautious optimism among investors.

Market activity remained broad-based, with 74 stocks closing higher. Key contributors to the index’s upward movement included United Bank Limited, up 1.43%, and Oil and Gas Development Company, which advanced 2.05%. On the downside, index-heavy stocks such as MCB Bank (-0.37%) weighed on overall gains. Fauji Cement also stood out on the positive side, rising 3.14% after reporting strong earnings per share of Rs4.39, reflecting a 15% year-on-year increase.

Technically, the market’s rebound from key support levels suggests a potential continuation of the upward trend, with the index expected to move towards and possibly surpass the 175,000 mark in the near term. Immediate support is now seen in the 169,500-170,000 range. Despite recent volatility, the KSE-100 remains about 10% below its all-time high, while the broader outlook continues to favour a seasonally strong period for equities.

Analysts note that if a meaningful geopolitical breakthrough emerges, particularly in the form of a peace agreement, the market could quickly transition into a phase of new highs, supported by improving investor confidence and renewed foreign interest.

Topline Securities said the KSE-100 index opened in the negative territory and dropped to the intra-day low of 1.65%, as investors reacted to delays in US-Iran peace negotiations, with the US continuing to intensify pressure through its naval blockade.

However, recovery was observed during the second half of the trading session as investors reacted positively to news that Iran’s Foreign Minister Abbas Araghchi was expected to arrive in Pakistan’s capital on Friday night for a second round of peace talks with the US. The KSE-100 closed at 170,672, up by 0.89%.

Top positive contribution to the index came from Meezan Bank, UBL, OGDC, NBP, and The Bank of Punjab, as they cumulatively contributed 765 points. On the other hand, Bank AL Habib, Faysal Bank, MCB, Habib Metropolitan Bank and Engro Fertilisers erased 158 points.

Traded value-wise, BOP (Rs3.9 billion), NBP (Rs2.1 billion), OGDC (Rs1.5 billion), DG Khan Cement (Rs1.26 billion) and Attock Refinery (Rs1.32 billion) dominated the activity, Topline said.

Nawaz Ali of JS Global stated that the market remained bearish during the first half, when the index dropped 2,792 points to the low of 166,380. However, sentiment shifted in the second half as expectations of renewed diplomatic talks gained traction, triggering strong buying and pushing the index to the intra-day high of 171,641 (+2,467 points). Eventually, the KSE-100 closed at 170,672, up 1,498 points.

Overall trading volume was recorded at 1.19 billion shares compared with the previous session’s tally of 1.32 billion. The value of shares traded during the day was Rs39.68 billion.

Shares of 480 companies were traded. Of these, 247 stocks closed higher, 196 fell, and 37 remained unchanged.

First National Equities was the volume leader with trading in 128.29 million shares, losing Rs0.19 to close at Rs1.51. It was followed by The Bank of Punjab with 112.67 million shares, gaining Rs1.95 to close at Rs36.17, and Unity Foods with 98.17 million shares, gaining Rs0.60 to close at Rs13.43.

Foreign investors sold shares worth Rs99.6 million, the National Clearing Company reported.