PSX closes bullish on Iran-US talks, oil prices ease

KARACHI (Staff Report): The Pakistan Stock Exchange (PSX) closed on a strong bullish note on Tuesday, as investor confidence returned on hopes of Iran-US negotiations and declining international oil prices.

The benchmark KSE-100 Index gained 1,455 points to close at 168,019 points. During the day, the index hit a high of 168,470 points and a low of 167,309 points, showing strong intraday momentum.

According to market data, trading volume remained low with 44.33 crore shares worth Rs 17.73 billion changing hands during the session. Out of 568 companies traded, prices of 319 companies declined while 137 companies advanced, indicating selective buying in blue-chip stocks.

The market opened on a positive note with a gain of 744 points at the start of the session and maintained its upward trajectory throughout the day on the back of buying in profitable and dividend-paying blue-chip companies.

Market analysts attributed the bullish trend to easing geopolitical tensions following reports of possible Iran-US talks, which pushed international oil prices lower. Lower oil prices are seen as positive for Pakistan’s economy, which is a net importer of petroleum products, as it helps reduce import bill and inflationary pressures.

Financial Expert Sheheryar Butt told The Karachi Post that signs of confidence restoration are emerging in the market and investors are entering on the back of positive expectations.

“There are indications of restoration of confidence, investors are entering the stock market on good hopes. Iran-US negotiations have brought oil prices down and stock markets up globally and locally,” Sheheryar Butt said.

He said buying was witnessed in fundamentally strong companies with good financial results and dividend-paying track records. Blue-chip stocks in banking, energy, fertilizer and cement sectors remained in focus.

“Investors are focusing on blue-chip companies with good financial results and dividend payouts. The market is expecting strong corporate earnings and improved economic indicators,” he added.

Sheheryar Butt said the market is also getting support from improving macroeconomic indicators, stable rupee, and expectations of easing inflation. He said foreign inflows and institutional buying also supported the market momentum.

According to him, the PSX has been showing resilience despite global volatility and the current rally is backed by genuine buying rather than speculative activity. He advised investors to remain cautious and focus on long-term value stocks rather than chasing short-term gains.

Market participants said investor sentiment was also supported by hopes of positive developments on the economic front, including IMF program continuity, controlled inflation and expected growth in large-scale manufacturing.

Analysts said the KSE-100 Index has been trading near its all-time high levels and crossing the 168,000 psychological barrier reflects strong investor optimism. They said if the positive momentum continues, the index may test new highs in coming sessions.

However, they warned that profit-taking cannot be ruled out at higher levels and investors should adopt a selective approach.

Sector-wise, buying was observed in commercial banks, oil and gas exploration companies, oil marketing companies, power generation and distribution, cement, fertilizer and technology sectors.

The market capitalization increased significantly with the surge in index, adding billions of rupees to investors’ wealth.

Looking ahead, analysts expect the market to remain positive in the near term, supported by attractive valuations, strong corporate earnings outlook and improving economic fundamentals. However, they said geopolitical developments, oil price movement and monetary policy decisions will remain key triggers for market direction.

Sheheryar Butt said the long-term outlook for PSX remains positive and investors with medium to long-term horizon can expect good returns from fundamentally strong stocks.