PSX posts 3.13% gain as easing U.S.-Iran tensions lift Pakistani equities

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PSX gains on easing tensions

Highlights

KSE-100 index surges 5,448.56 points or 3.13% to 179,335.24 as easing U.S.-Iran tensions and lower oil prices reduce risk premium on Pakistani equities.
UBL, FFC, HUBC, LUCK, and MEBL contribute about 1,982 points to the benchmark index amid firm investor sentiment and falling international crude prices.
All-share traded value jumps to Rs50.66 billion from Rs22.57 billion despite trading volumes dropping to 972.43 million shares, while the rupee strengthens slightly to 276.65 against the U.S. dollar.

Market rally driven by lower risk premium

As reported by Business Recorder, heavy buying emerges at the Pakistan Stock Exchange after U.S. President Donald Trump says military action against Iran is not necessary "at this point," helping the KSE-100 index rise 5,448.56 points, or 3.13%, to 179,335.24.

The benchmark opens higher, maintains momentum through the session and finishes near its intraday high of 179,424.04. Saad Hanif of Ismail Iqbal Securities says the rally reflects a repricing of risk on the PSX, with easing geopolitical tensions reducing the risk premium on Pakistani stocks while softer oil prices improve the import bill, current account and inflation outlook.

Topline Securities says investor sentiment stays firm as international oil prices ease and fears of a broader escalation between the U.S. and Iran diminish. It says UBL, FFC, HUBC, LUCK and MEBL are the biggest positive contributors, together adding about 1,982 points to the benchmark index.

Regional markets and local trading activity

Broader market sentiment also improves across Asia as falling crude prices support equities ahead of U.S. inflation data that could shape the near-term interest rate outlook. Brent crude hovers near its lowest level since early September, while South Korea's KOSPI rises more than 5%, Japan's Nikkei gains about 3% and MSCI's broad Asia-Pacific index adds 1.5%.

In Pakistan, the rupee records a marginal gain against the U.S. dollar in the inter-bank market, closing at 276.65. Trading volume on the all-share index falls to 972.43 million shares from 1,479.99 million in the previous session, while traded value climbs to Rs50.66 billion from Rs22.57 billion.

Cnergyico PK leads volumes with 70.09 million shares, followed by Tasdeeq Information with 46.85 million and K-Electric Ltd with 42.27 million. Of the 501 companies traded on Tuesday, 363 advance, 107 decline and 31 remain unchanged.

The latest update follows our earlier article on sovereign ratings pressure from geopolitical shocks and elevated fiscal spending in emerging markets.

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