Banking stocks lead the rally as lower oil prices boost confidence in Pakistan’s economic outlook.
KARACHI: The KSE-100 Index of the Pakistan Stock Exchange (PSX) rebounded on Friday, rising 982 points to close at 182,241, as easing geopolitical tensions in the Middle East and softer international oil prices lifted investor sentiment.
The benchmark KSE-100 Index advanced 0.54% during the session, with broad-based buying returning after indications that the United States and Iran are continuing diplomatic engagement despite recent military confrontations.
The decline in global crude oil prices further supported market sentiment, as lower energy costs are expected to ease pressure on Pakistan’s import bill, inflation and external account.
Banking Stocks Drive KSE-100 Index Higher
The banking sector emerged as the biggest contributor to the market’s gains.
Meezan Bank (MEBL), United Bank Limited (UBL), Habib Bank Limited (HBL), MCB Bank, and Askari Bank (AKBL) collectively added approximately 548 points to the KSE-100 Index, helping the benchmark recover from recent losses.
Analysts said investor appetite improved as expectations of reduced geopolitical risks encouraged buying in heavyweight banking stocks.
Trading Activity Remains Strong
Overall market participation remained healthy, with investors trading 936 million shares worth approximately Rs38 billion during the session.
In terms of traded value, GAL topped the market with Rs2.74 billion, followed by GHNI (Rs1.75 billion), UBL (Rs1.73 billion), CNERGY (Rs1.33 billion) and MLCF (Rs1.15 billion).
Outlook
Market participants said improving prospects for diplomacy between the United States and Iran, together with lower international oil prices, helped restore confidence and supported buying across key sectors.
Analysts expect the KSE-100 Index to remain influenced by developments in the Middle East, movements in global crude oil prices and upcoming domestic economic indicators, which will continue to shape investor sentiment in the sessions ahead.