Lower oil prices lift investor sentiment as energy and banking stocks drive market to a fresh all-time high
KARACHI: The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) extended its winning streak on Friday, gaining 851 points to close at a record high of 185,372 as lower international oil prices continued to strengthen investor confidence.
The benchmark index advanced 851 points, or 0.46%, during the session, with market sentiment supported by expectations that declining crude oil prices will improve Pakistan’s external account by reducing the country’s energy import bill.
Banking and Energy Stocks Lead Rally
Index-heavy stocks United Bank Limited (UBL), Oil & Gas Development Company Limited (OGDCL), Fauji Fertilizer Company (FFC), Mari Energies Limited (MARI) and Pakistan Petroleum Limited (PPL) were the biggest contributors to the benchmark’s gains.
Collectively, these five stocks added around 611 points to the KSE-100 Index, helping the market climb to a fresh record closing level.
E&P Sector Dominates Trading
The Exploration and Production (E&P) sector remained the centre of investor interest, accounting for the highest traded value during the session.
Oil & Gas Development Company Limited (OGDCL) led the market with a traded value of Rs3.08 billion, followed by Mari Energies at Rs2.43 billion and Pakistan Petroleum Limited (PPL) at Rs1.81 billion.
The strong performance of energy stocks reflected optimism over the sector’s earnings prospects despite lower global crude oil prices.
Robust Market Participation
Trading activity remained healthy throughout the session, with investors exchanging 805 million shares worth approximately Rs42.6 billion.
The sustained trading volumes highlighted continued investor participation as the benchmark index maintained its record-setting momentum.
Outlook
Market analysts expect investor sentiment to remain closely tied to international oil prices, corporate earnings announcements and key macroeconomic indicators.
They believe lower global crude oil prices could support Pakistan’s economic outlook by easing inflationary pressures, reducing the import bill and strengthening the country’s external account, providing further support for the equity market in the near term.