Lower Oil Prices and Improved Sentiment Support Market Rally
KARACHI: The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) extended its winning streak on Thursday, rising 887 points to close at 181,398 points as strong investor participation and positive sentiment supported broad-based buying across key sectors.
The KSE-100 Index advanced 0.49 per cent from the previous session after reaching an intraday high of 1,358 points. Investors remained active throughout the day, helping the market maintain upward momentum despite recent volatility.
Market participants attributed the rally to the continued decline in international crude oil prices, which improved Pakistan’s macroeconomic outlook by easing concerns over inflation and external account pressures.
Geopolitical Optimism Boosts Investor Confidence
Investor sentiment was further strengthened by optimism surrounding the anticipated signing of a peace memorandum of understanding (MoU) between the United States and Iran.
Market analysts said hopes of easing geopolitical tensions in the Middle East encouraged investors to increase exposure to equities, particularly in sectors that are sensitive to energy prices and global economic developments.
The prospect of reduced regional tensions also improved risk appetite across emerging markets, supporting buying activity at the local bourse.
Heavyweight Stocks Lead Index Gains
On the index contribution front, major listed companies played a significant role in driving the benchmark higher.
Hub Power Company (HUBC), Service Industries (SRVI), Fauji Fertilizer Company (FFC), Engro Holdings (ENGROH) and Pakistan Petroleum Limited (PPL) emerged as the leading contributors to the day’s gains.
Collectively, these stocks added approximately 679 points to the benchmark index, accounting for a substantial portion of the market’s advance.
Trading Activity Remains Robust
Market participation remained strong, with total traded volume reaching 1.241 billion shares during the session.
The total value of traded shares stood at Rs58 billion, highlighting continued investor engagement and liquidity in the market.
Kohinoor Spinning Mills (KOSM) led the volume chart, with around 230 million shares changing hands during trading.
Outlook for Pakistan Stocks
Analysts expect the KSE-100 Index to remain sensitive to developments in international oil markets and geopolitical events.
However, easing energy prices, improving investor confidence and expectations of stronger economic stability could continue to support Pakistan stocks in the near term, provided external conditions remain favourable.
