PSX staged a remarkable rebound, with the benchmark KSE-100 Index surging by 9,697 points (+6.62%) to close at 156,177, marking the second-highest point gain in the history of the exchange.
“Trading commenced on a jubilant note as investor sentiment improved sharply following an early morning statement by Donald Trump indicating that the Middle East conflict may be nearing its end,” said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.
The optimistic development triggered aggressive buying at the open, pushing the market up by more than 5% within minutes, which led to a temporary trading halt in accordance with PSX circuit breaker regulations, he added.
Once trading resumed after an hour, broad-based buying momentum continued across major sectors, driving the benchmark index to an intraday high of 158,354. However, some profit-taking in the final hour of trading trimmed earlier gains, leading the index to settle at 156,177 by the close.
On the sectoral front, progress on Pakistan’s 5G spectrum auction remained in focus. The auction process is being conducted in two stages through electronic bidding, with six spectrum bands on offer.
The first phase comprises five bidding rounds, while the second stage will commence following a one-day break. All three telecom operators—local subsidiaries of VEON, e&, and China Mobile—are participating in the auction.
FFC, ENGROH, UBL, HUBC, MEBL, HBL, LUCK, PPL, OGDC, and SYS collectively contributed 5,692 points to the day’s rally.
Despite the strong market performance, overall participation remained relatively modest, with total traded volume recorded at 484 million shares, while turnover stood at PKR 31.1 billion. K-Electric (KEL) led the volume chart, with 53.2 million shares traded during the session.
Outlook:
Yesterday’s expectation that markets were approaching a “peak fear” phase appears to have played out, as constructive developments on the Middle East front helped restore investor confidence and triggered a strong relief rally, resulting in the second-largest bull run in PSX history today.
Going forward, if geopolitical conditions remain stable, the positive momentum may extend into the next session; however, investors are likely to remain cautious as markets continue to monitor external developments closely.