Buying momentum accelerated at the Pakistan Stock Exchange (PSX) as investors found respite in declining oil prices. The benchmark KSE-100 Index settled with a gain of nearly 4,300 points on Wednesday.
The market maintained a positive momentum throughout the trading session, hitting an intra-day high of 154,684.
At close, the benchmark index settled at 154,292.25, up by 4,276.09 points or 2.85%.
The rally was primarily led by index-heavy stocks—UBL, OGDC, FFC, PPL, and MEBL—which collectively added 1,816 points to the benchmark, providing significant support to the market, said Topline Securities in its post-market commentary.
Analysts attributed the buying spree to a decline in global oil prices and to a rebound in regional markets.
“The market is buying the rumour of a secret text-based backchannel between the US and Iran,” said Behtari Capital.
“Despite official denials, the hope of a ceasefire has put a lid on Brent crude at $102 per barrel, sparking this massive relief rally,” it added.
Meanwhile, Saad Hanif, Head of Research at Ismail Iqbal Securities Limited, also attributed the buying to a decline in oil prices.
“Value buying has started to emerge, supported by relatively stable oil prices and a positive trend in global markets, so a trickle effect. Additionally, recent remarks by US president suggesting that the war could end soon and oil prices may decline have helped improve overall market sentiment,” he told media.
On Tuesday, PSX witnessed a mixed yet resilient trading session, with the benchmark index regaining the 150,000 psychological level on the back of improved investor sentiment, although overall activity remained cautious amid persistent geopolitical concerns and recent market volatility. The KSE-100 Index closed at 150,016.16 points, posting a gain of 837.50 points or 0.56%.
Internationally, Asian shares rallied on Wednesday as oil prices paused their gains, with markets turning to the US Federal Reserve meeting to see how policymakers will balance growth and inflation risks amid ongoing geopolitical tensions in the Middle East.
Israel intensified its offensive by killing Iran’s security chief, while Iran renewed its strikes on oil facilities in the United Arab Emirates (UAE). A senior Iranian official said the new supreme leader rejected de-escalation offers conveyed by intermediaries, signalling no quick end to a war that has unleashed a global oil shock.
Oil prices took a breather on Wednesday from earlier gains, though the Strait of Hormuz remained largely shut. Brent crude futures dropped 1% to $102.28 a barrel, while U.S. West Texas Intermediate crude fell 1.6% during the day.
However, oil prices jumped later during the day, reaching $107.95 a barrel by 1321 GMT.
Meanwhile, the Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Wednesday. At close, the local currency settled at 279.26, up by Re0.01 against the greenback.
Volume on the all-share index jumped to 397.47 million from 260.43 million recorded in the previous close.
The value of shares increased to Rs22.35 billion from Rs17.21 billion in the previous session.
B.O.Punjab was the volume leader with 54.73 million shares, followed by Wasl Mobility® with 31.55 million shares, and K-Electric Ltd with 26.43 million shares.
Shares of 483 companies were traded on Wednesday, of which 339 registered an increase, 79 recorded a fall, and 65 remained unchanged.
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