ISLAMABAD: Buying returned to the Pakistan Stock Exchange (PSX) after the announcement of a ceasefire between Iran and Israel, with the benchmark KSE-100 Index surging by more than 6,000 points on Tuesday.
The bullish momentum continued throughout the trading session, driving the KSE-100 Index to an intra-day peak of 122,725.21.
By the close of the trading, the KSE-100 Index settled at 122,246.63, marking a gain of 6,079.16 points or 5.23%.
The buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, power generation, and refinery. Index-heavy stocks including HUBCO, ARL, SSGC, PSO, MARI, OGDC, PPL, POL, UBL, and HBL traded in the green.
“The ceasefire announcement and a 3-4% drop in international oil prices are driving the buying rally at the bourse,” said Sana Tawfik, Head of Research at Arif Habib Limited (AHL).
On Tuesday, a total of 804,779,73 shares were traded at the Pakistan Stock Exchange as compared to 595,010,639 shares on the last working day, whereas the price of shares stood at PKR 37.614 billion against PKR 23.488 billion on the previous trading day.
As many as 477 companies transacted their shares in the stock market, 407 of them recorded gains, and 35 met losses, whereas the share price of 35 companies remained unchanged.
The three top trading companies were WorldCall Telecom with 65,356,135 shares at PKR 1.46 per share, followed by K-Electric Ltd with 54,305,248 shares at PKR 5.24 per share, and Cnergyico PK settled with 37,885,162 shares at PKR 7.16 per share.
PIA Holding Company LimitedB witnessed a maximum increase of PKR 1,003.85 per share, closing at PKR 11,042.30, whereas Unilever Pakistan Foods Limited was the runner-up with PKR 721.43 rise in its share price to close at PKR 23,621.43.
Faisal Spinning Mills Limited witnessed a maximum decrease of PKR 20.17 per share price, closing at PKR 315.00, whereas the runner-up Tandianwala Sugar Mills Limited settled at PKR 15.01, showing a decline in its per share price to PKR 165.69.
Earlier on Monday, PSX witnessed a bearish trend, losing 3,855.77 points, a negative change of 3.21 percent, closing at 116,167.47 points as compared to 120,023.24 points on the last trading day.
Global markets rallied on Tuesday, while the U.S. dollar continued to weaken, following President Donald Trump’s announcement that Iran and Israel had reached a ceasefire agreement. The news eased fears of supply disruptions, triggering a sharp drop in oil prices.
Earlier, an Iranian official confirmed Tehran’s agreement to a ceasefire; however, Iran’s foreign minister stated that hostilities would not end unless Israel halted its attacks.
Oil prices dropped more than 3%, adding to Monday’s 9% decline after Iran’s symbolic retaliation against a US base, which had minimal impact and suggested a temporary pause in escalation.
