Key Takeaways
- The Pakistan Stock Exchange’s benchmark index gained 2,837.78 points to close at 178,123.56.
- Top contributors included Engro Holdings, United Bank Limited, and Meezan Bank Limited.
- Improved investor sentiment and easing geopolitical tensions supported the market recovery.
The Pakistan Stock Exchange (PSX) witnessed a significant rebound on Thursday as its benchmark KSE-100 index surged by 2,837.78 points to close at 178,123.56, marking the strongest recovery since Tuesday’s sharp decline.
According to Topline Securities Ltd, the market staged a strong recovery, extending Wednesday's rebound as broad-based buying returned to the market. The brokerage house noted that improved investor sentiment and easing concerns over geopolitical tensions contributed significantly to this positive momentum.
Engro Holdings, United Bank Limited, Meezan Bank Limited, Hub Power Company, and Lucky Cement emerged as key contributors, collectively adding approximately 967 points to the benchmark index’s overall gain. These heavyweight stocks played a crucial role in driving the market upwards.
Awais Ashraf, director of research at AKD Securities, observed that US President Donald Trump's recent remarks indicated his desire to bring Iran back to the negotiation table to end the conflict. This sentiment, coupled with stability in oil prices over the past two days, added to investor confidence.
However, concerns over energy supplies increased after the escalation in the Iran war and reports of Tehran asking Yemen’s Houthis to stand ready to close the Red Sea oil route. Despite these worries, Brent crude futures rose 1.09% to $85.88 a barrel, while US West Texas Intermediate futures climbed 1.12% to $80.49 a barrel.
The sustained positive momentum at the stock market comes as KSE-100 continues to recover from Tuesday’s bloodbath, where it had lost 6,408.23 points due to panic-driven selling amid renewed fighting between the US and Iran, which heightened concerns about energy flows through the Strait of Hormuz.
Topline Securities Ltd further stated that the market continued Wednesday's rebound after Trump's remarks, indicating a cautious optimism among investors. The brokerage house noted that the index had already surpassed 177,000 points by 10:02am and maintained a gain of over 2,000 points compared to the previous close for the rest of the day.
The market staged a strong recovery, extending Wednesday’s rebound as broad-based buying returned to the market.
Topline Securities Ltd, Brokerage house
Stability in oil prices for the past two days is also adding to investor confidence.
Awais Ashraf, director of research at AKD Securities, Research Director
