Pakistan Stock Exchange rises amid easing tensions between the US and Iran — Dawn
In Karachi, Pakistan, the KSE-100 index of the Pakistan Stock Exchange ended trading up 830.43 points, or 0.48%, at 172,232.51 points. The intraday high was 172,762.41 points. It was the market’s third consecutive positive trading day, Dawn reports.
Oil and geopolitics
Topline Securities linked the market recovery to lower international oil prices and improved dynamics in relations between the US and Iran. The easing of geopolitical tensions supported investors’ willingness to take risks and reduced concerns over regional risks and Pakistan’s external sector.
Ali Najib, deputy head of the trading division at Arif Habib Ltd, said investor sentiment also improved after indirect talks between US and Iranian delegations through intermediaries on the sidelines of the UN General Assembly. According to him, reports of progress in these contacts supported overall market sentiment.
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Refinery shares and trading activity
The oil refining sector was among the gainers. Pakistan Refinery shares reached the upper limit of permissible growth, while shares of Attock Refinery, National Refinery and Cnergyico PK also rose. This came amid market speculation that agreements on refinery modernization could be signed as early as Thursday or Friday.
Fauji Fertiliser, United Bank, Meezan Bank, Attock Refinery and Engro Holdings provided significant support to the index, adding about 493 points combined. Trading volume increased by 20.54% to 773.59 million shares, while their value rose by 43.25% to 26.5 billion Pakistani rupees. The highest trading volume was recorded in Cnergyico PK shares, at 150.27 million securities.
IMF program reviews
An additional factor for investors was the arrival of an International Monetary Fund mission in Pakistan to begin discussions on the fourth review of the $7 billion Extended Fund Facility program and the third review of the $1.4 billion Resilience and Sustainability Facility. Analysts expect market volatility and point to the importance of energy prices, risks to the external sector and the outcomes of the IMF program reviews.
