The Pakistan Stock Exchange (PSX) rebounded on Friday, with the benchmark KSE-100 index gaining 982.10 points, or 0.54%, to close at 182,241.78, as easing geopolitical tensions between the United States and Iran boosted investor sentiment and alleviated concerns over rising crude oil prices.
Intra-Day Rally and Profit-Taking
The KSE-100 index rallied as much as 2,218 points intra-day, touching a high of 183,478, before profit-taking trimmed some of the gains. Trading activity remained healthy, with 949 million shares changing hands, while the value of traded shares stood at Rs38.41 billion.
According to Arif Habib Limited (AHL), the gain of 982 points helped the index close the week with a reduced 1.7% week-on-week decline. On the KSE-100, 76 shares advanced while 24 declined.
Key Contributors and Drags
Meezan Bank (+2.46%), HBL (+1.82%), and UBL (+0.45%) were the top contributors to the index gains. Conversely, Service Industries (-1.64%), Sazgar Engineering (-1.67%), and Sui Northern Gas Pipelines Ltd (-1.65%) were the biggest drags, according to AHL.
The banking sector provided significant support, with Meezan Bank, UBL, HBL, MCB Bank, and Askari Bank cumulatively contributing 548 points, as reported by Topline Securities.
US-Iran Diplomatic Talks
Investor optimism was fueled by indications that the United States and Iran were continuing diplomatic talks over a permanent peace deal, despite recent clashes that threatened a fragile ceasefire, according to an American official. This led to a decline in international crude oil prices, reducing concerns over prolonged geopolitical tensions.
Market Outlook and Recommendations
AHL projected the index range for the coming week to be 180,000 to 188,000. Nawaz Ali of JS Global advised investors to adopt a 'buy-on-dips' stance, provided the geopolitical situation remains calm. He noted that the market rebounded supported by buying at attractive levels.
Topline Securities echoed this sentiment, stating that the easing of oil prices improved investor sentiment and reduced concerns over prolonged geopolitical tensions.
Trading Volumes and Activity
Overall trading volumes were recorded at 948.78 million shares, compared to 982.12 million in the previous session. Shares of 495 companies were traded, with 292 closing higher, 169 falling, and 34 remaining unchanged.
Volume leaders included Cnergyico Pk with 151.75 million shares, gaining Rs0.29 to close at Rs9.69; K-Electric with 67.53 million shares, gaining Rs0.16 to close at Rs8.10; and WorldCall Telecom with 51.76 million shares, closing unchanged at Rs1.32.
Traded value-wise, Ghandhara Automobiles (Rs2.74 billion), Ghandhara Industries (Rs1.75 billion), UBL (Rs1.73 billion), Cnergyico Pk (Rs1.33 billion), and Maple Leaf Cement (Rs1.15 billion) dominated activity, according to Topline.
Foreign investors were net buyers, purchasing shares worth Rs252.1 million, as reported by the National Clearing Company.
