Improving US-Iran dynamics and renewed buying in refinery and index-heavy stocks lift market sentiment.
Pakistan’s stock market staged a strong recovery on Wednesday as easing international oil prices and improving US-Iran dynamics boosted investor sentiment and revived risk appetite.
The KSE-100 Index climbed to an intraday high of 1,360 points before settling at 172,232, gaining 830 points or 0.48% from the previous close.
Oil Prices and US-Iran Developments Support Market
The positive momentum was supported by softer global oil prices and signs of easing tensions between the United States and Iran.
The developments helped reduce concerns over regional risks and potential pressure on Pakistan’s external account, encouraging investors to return to equities.
Buying interest was particularly visible in refinery stocks, which emerged as one of the main highlights of the session.
Refinery Stocks Lead Rally
Pakistan Refinery Limited (PRL) hit its upper circuit, while Attock Refinery Limited (ATRL), National Refinery Limited (NRL) and Cnergyico PK Limited (CNERGY) also closed higher.
Market chatter around the long-awaited refinery policy provided additional support to the sector, with expectations that the policy could be signed as early as Thursday or Friday.
The development generated renewed interest in refinery stocks as investors positioned themselves ahead of a potential policy announcement.
Index Heavyweights Add Momentum
Index-heavy companies also contributed significantly to the market’s recovery.
Fauji Fertilizer Company (FFC), United Bank Limited (UBL), Meezan Bank Limited (MEBL), ATRL and Engro Holdings (ENGROH) were among the leading contributors, collectively adding approximately 493 points to the KSE-100 Index.
The broad-based buying helped the benchmark recover strongly after recent pressure on equities.
Trading Activity Remains Robust
Market activity remained elevated, with total trading volume reaching approximately 773 million shares.
The total traded value stood at around PKR 26.5 billion, indicating strong participation during the session.
CNERGY led the volume chart, with more than 150 million shares changing hands.
The combination of easing oil prices, improved geopolitical sentiment and renewed interest in refinery stocks provided support to the benchmark, while investors continued to monitor developments surrounding the refinery policy and external economic conditions.