PSX Gains 830 Points as US-Iran Talks, Lower Oil Lift Sentiment
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange extended its recovery as the benchmark KSE-100 Index gained 830.43 points, or 0.48%, to close at 172,232.51, supported by hopes of progress in US-Iran diplomacy and easing international oil prices.
The market remained in positive territory throughout Wednesday’s session, marking a third consecutive positive close, according to Dawn. Analysts linked the improved mood to easing geopolitical concerns and falling crude prices, which reduced some of the pressure facing Pakistan’s energy-importing economy.
Investor sentiment was supported by reports of diplomatic engagement between Washington and Tehran around the UN General Assembly. US President Donald Trump said on September 22 that talks with Iran were continuing and that he believed a settlement would eventually be reached. Iran has separately signalled willingness to pursue diplomacy, though major differences remain between the two sides.
The possibility of reduced regional tensions has particular significance for Pakistan because the Middle East conflict has contributed to volatility in crude prices and concerns over energy supplies.
During the session covered by the PSX report, Brent crude traded near $98 a barrel while US West Texas Intermediate fell below $90, helping ease inflation-related concerns. Oil prices have remained highly sensitive to developments involving Iran, the Strait of Hormuz and Gulf supplies.
Banks, Fertiliser and Refineries Support Market
Buying was spread across several major sectors, including fertiliser, commercial banks, refineries, oil and gas exploration, auto assemblers and cement.
KTrade Securities said Fauji Fertiliser, UBL, Meezan Bank and Attock Refinery were among the important contributors to the positive session.
Ismail Iqbal Securities said fertiliser, banking and exploration and production stocks collectively contributed 497 points to the benchmark index.
Refinery shares also attracted buying interest during the latter part of the session amid market speculation about a possible refinery-policy agreement. Because this was reported as market talk rather than a confirmed government announcement, it should not be treated as an established policy development.
IMF Review Adds to Investor Confidence
Domestic economic developments provided another supportive factor.
An International Monetary Fund staff mission has arrived in Pakistan for negotiations covering the fourth review of the Extended Fund Facility and third review of the Resilience and Sustainability Facility, according to the Tribune report. Market analysts said the beginning of those discussions added to investor confidence.
The review remains ongoing, however, and no new IMF staff-level agreement has yet been announced.
Trading Volume Rises to 773.6 Million Shares
Market activity strengthened alongside the index.
Total trading volume increased to 773.6 million shares, compared with 641.8 million shares in the previous session. Of 496 companies traded in the ready market, 262 advanced, 196 declined and 38 closed unchanged.
Cnergyico was the most actively traded stock, with 150.3 million shares changing hands. It gained Rs1.11 to close at Rs14.31.
Foreign investors, however, remained net sellers, offloading shares worth Rs547.4 million, according to National Clearing Company data cited by the Tribune.
Despite the positive close, analysts cautioned that the market remains sensitive to geopolitical developments, international oil prices and foreign and domestic investment flows.
The latest advance therefore reflects improving sentiment rather than the disappearance of market risks. Developments in US-Iran diplomacy, crude prices and Pakistan’s ongoing IMF review are likely to remain important drivers of the KSE-100 in coming sessions.
