Pakistan’s benchmark index recovered from early losses after a retreat in crude oil prices improved investor sentiment amid easing concerns over regional energy disruptions.
The Pakistan Stock Exchange (PSX) staged a strong recovery during the trading session, with the KSE-100 Index gaining 1,646 points, or 0.98%, to close at 170,512.
The market initially opened on a negative note as Houthi assaults on Saudi energy facilities pushed international crude oil prices higher. The rise in oil prices raised concerns among investors over inflationary pressures and the potential impact on Pakistan’s external account and broader economic outlook.
However, sentiment improved during the latter part of the session after reports emerged that the six-member Gulf bloc was considering a meeting with Iranian officials next week to discuss the future of the Strait of Hormuz.
The reports triggered a decline in crude oil prices, easing some of the pressure on investor sentiment. The retreat in oil prices encouraged buying activity and helped the benchmark index recover its earlier losses before closing firmly in positive territory.
Several index-heavy stocks contributed significantly to the market’s recovery. MEBL, FFC, LUCK, PPL, OGDC and EFERT were the leading positive contributors, collectively adding approximately 1,032 points to the KSE-100 Index.
The strong performance of these stocks helped offset the initial risk-off sentiment and provided momentum to the broader market during the second half of trading.
Trading activity remained robust throughout the session. Total market volume stood at 683 million shares, while traded value reached approximately PKR33.6 billion, reflecting strong participation from investors.
In terms of traded value, MCF PA led the market with transactions worth around PKR1.65 billion, followed by HBL at PKR1.47 billion, CNERGY at PKR1.31 billion, ATRL at PKR1.29 billion and PPL at approximately PKR1.1 billion.
Market direction is likely to remain sensitive to developments surrounding regional tensions, crude oil prices and the security of key energy routes. Any further easing in geopolitical risks could support investor confidence, while renewed disruptions could revive concerns over oil prices and Pakistan’s external-sector position.