Broad-based buying across key sectors including banks, fertilisers, power, oil & gas, autos, leading the charge
KARACHI:
Buying momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday, with investors reacting positively to the Kingdom of Saudi Arabia’s commitment of an additional $3 billion in deposits for Pakistan, boosting market sentiment early in the session.
Trading commenced on a cheery note, and by 9:34am the benchmark KSE-100 Index had surged by 4,287.34 points, or 2.59%. The strong upward move also pushed the index above the key 170,000 level within the opening minutes of trading.
Market participants attributed the bullish trend to multiple positive triggers, including fresh financial inflows from Saudi Arabia, improving geopolitical sentiment amid talks of a second round of ceasefire discussions between Iran and the United States, and better-than-expected corporate earnings, which further reinforced investor confidence.
Overall, the combination of supportive external financing, easing regional tensions, and strong corporate performance fuelled broad-based buying across key sectors, keeping the market firmly in positive territory.
Though the rally maintained its strength through the session, the index touched an intra-day high of 170,640.26 and a low of 168,182.98 before settling higher by 2,885.10 points, or 1.74% at 168,519.94.
“Anticipation of the resumption of US–Iran talks, along with Saudi Arabia’s approval of $3 billion for Pakistan and the three-year extension of its existing $5 billion deposit, has boosted investor sentiment, AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.
Read: PSX recovers on US-Iran diplomatic signals
Meanwhile, better-than-expected results from United Bank (UBL), driven by gains on securities sales and stronger-than-forecast deposit growth, have supported the market in maintaining its momentum, Ashraf mentioned.
KTrade Securities equity trader Ahmed Sheraz noted that the KSE-100 index closed on a strong note at 168,519 points, gaining 2,885 points (+1.74% DoD), as sentiment stayed buoyant through the session despite late-hour profit-taking trimming earlier intra-day highs of nearly +5,000 points. Activity remained robust with volumes clocking in at 600 million shares, reflecting sustained participation across key retail-heavy counters.
The positive momentum was largely underpinned by improving geopolitical signals, particularly renewed optimism around US–Iran negotiations, with Pakistan actively positioning itself as a mediator and Islamabad expected to host upcoming discussions.
Further support came from Saudi Arabia’s commitment to extend an additional $3 billion deposit, in addition to its earlier support of $5 billion, reinforcing macro stability and boosting investor confidence.
Sector-wise, gains were broad-based with banks, fertilisers, power, oil & gas, and autos leading the charge, while selective interest also emerged in cement and industrial names. Index-heavy contributions came from United Bank, Fauji Fertiliser, Hub Power, Meezan Bank, Bank of Punjab, Oil & Gas Development Company, and Sazgar Engineering, anchoring the benchmark’s upward trajectory.
Going forward, market direction will remain closely tied to developments on the geopolitical front, particularly clarity on US–Iran negotiations and movement in international oil prices. While improving news flow provides a constructive undertone, a cautious and selective stance is advised until clearer visibility emerges, Sheraz wrote.
Overall trading volume increased to 1.20 billion shares compared with Tuesday’s tally of 824.5million. The value of traded shares stood at Rs59.4billion. Stocks of 490 companies were traded. Of these, 370 shares rose, 83 fell and 37 remained unchanged. K-Electric was the volume leader with trading in 125million shares, rising Rs0.18 to close at Rs7.77.