PSX stages modest rally, gains 1,092 points

Easing oil prices, pause in ME tensions fuel selective stock buying

Pakistan Stock Exchange (PSX) on Tuesday staged a modest rally as investors remained calm. engaged in healthy buying activity following recent losses.

Positive sentiment prevailed after international oil prices fell nearly 2% in early Asian trade over US President Donald Trump's statement. he had paused a planned attack on Iran to allow negotiations aimed at ending the Middle East conflict.

Robust buying was observed in index-heavy sectors including energy, cement, auto assemblers, commercial banks. oil marketing, which kept the benchmark index in positive territory throughout the session.

Although the market briefly retreated in midday trading due to profit-booking. the index recovered in the latter half on renewed buying interest. The index oscillated between the intra-day high of 164,309.65 and the low of 162,563.58. At close, the KSE-100 index posted a handsome rise of 1,091.66 points, or 0.67%, to settle at 162,896.68.

KTrade Securities. in its market wrap, wrote that the KSE-100 closed higher by 1,092 points as selective buying returned despite a subdued overall activity. Volumes stayed thin, with 170 million shares traded in the KSE-100 universe, reflecting cautious recovery rather than broad-based conviction. Gains were largely driven by commercial banks, oil & gas. fertiliser stocks, where UBL, Bank AL Habib, OGDC, Fauji Fertiliser, Pakistan Petroleum and Hub Power emerged as key index movers.

Despite the positive close, the broader backdrop remained delicate. Brent crude hovering around $109-111 per barrel kept inflation concerns alive for import-reliant economies including Pakistan. while geopolitical developments were the market's primary overhang. The evolving US-Iran situation and uncertainty around the Strait of Hormuz posed risks to energy prices and investor sentiment.

KTrade believes the market may continue to witness volatile and headline-driven moves. "Until greater clarity emerges on geopolitics. oil direction, the index is likely to remain range bound with a cautious bias."

Tuesday saw a "gap-up opening" for the KSE-100 index, with the day's high recorded at 164.3k before gains were trimmed. it closed up 0.67%, Arif Habib Limited (AHL) commented. Market breadth remained positive as 62 stocks advanced while 33 declined. Key contributors included UBL (+2.52%), BAHL (+3.36%) and OGDC (+2.04%). On the downside, Engro Holdings (-1.22%), Meezan Bank (-0.28%) and Cherat Cement (-1.8%) emerged as major index drags.

Honda Atlas Cars (+10%) remained in focus after reporting MY26 earnings per share of Rs22.64. up 19% year-on-year, along with dividend of Rs9. Earnings and payout came in above expectations. Net revenue stood at Rs122,283 million versus Rs78,066 million in MY25, reflecting a 57% increase. The YoY growth was driven by a 42% rise in volumes to 8,058 units, with City. Civic sales at 7,274 units and HRV & BRV sales at 784 units, AHL said.

Meanwhile, Pakistan invited Expressions of Interest (EOIs) for the sale of majority stakes in Islamabad, Gujranwala and Faisalabad electricity companies. Additionally, Trump called off fresh attacks on Iran as Saudi Arabia. other Gulf allies wanted more time to pursue diplomacy. On KSE-100, "160k is the key level to watch for in the remainder of the week", AHL added.

Overall market volumes declined to 391.9 million shares compared to Monday's tally of 499.8 million. The value of traded shares stood at Rs23 billion.

In the ready market, shares of 480 companies were traded. Of these, 262 stocks rose, 171 fell and 47 remained unchanged.

Cnergyico PK was the volume leader with trading in 24 million shares, edging down Rs0.05 to close at Rs8.38. Foreign investors sold shares worth Rs431.5 million, the National Clearing Company reported.

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