Stocks end week with jump of 2,787 points as diplomatic efforts ease geopolitical tensions

KARACHI: The Pakistan Stock Exchange (PSX) rebounded Friday after a couple of negative sessions, as international diplomatic efforts have eased geopolitical tensions, which emerged following the tragic incident in Kashmir last month.

The benchmark KSE-100 index surged by 2,787.36 points, or 2.5 per cent, to 114,113.94 points, up from 111,326.58 points recorded in the last session. The highest index of the day remained at 114,546.88 points, while the lowest level was recorded at 112,820.08 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks staged a sharp recovery after the US and UN urged Pakistan and India to defuse tensions.

He said that reports of a 0.3 per cent YoY CPI inflation rate for April 2025, increased expectations of monetary easing by the SBP, along with anticipated approval for the upcoming IMF tranche disbursement later this month, played a catalytic role in the record bullish close at the PSX.

The KSE-30 index increased by 924.28 points or 2.72 per cent to 34,917.43 points from 33,993.15 points. Traded shares dropped by 128 million shares to 372.363 million shares from 490.948 million shares. The trading value dropped to Rs23.285 billion from Rs31.124 billion. Market capital expanded to Rs13.808 trillion against Rs13.52 trillion. Of the 445 companies active in the session, 331 closed in green, 63 in red and 51 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the KSE-100 index rebounded after remaining under pressure for two consecutive trading sessions. “This recovery in the market can be attributed to statements by the US Administration indicating that they are working to ensure that tensions between India and Pakistan do not escalate into a broader regional conflict,” he said.

The top positive contributions to the index came from UBL, EFERT, HUBC, LUCK, MEBL, and HBL, which cumulatively contributed +1,238 points to the index.Traded value-wise LUCK (Rs1.53 billion), SNGP (Rs1.39 billion), DGKC (Rs1.26 billion), MARI (Rs1.02 billion) and UBL (Rs978 million) dominated the trading activity.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs436.63 to Rs4,802.96 per share, followed by Hoechst Pakistan Limited, which increased by Rs223.37 to Rs3,173.37 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs461.63 to Rs23,008.12 per share; Pakistan Tobacco Company Limited followed it, which closed lower by Rs30.05 to Rs1,162.34 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the robust rally was fuelled by cooling regional tensions following last week’s IIOJK incident, with international diplomatic efforts appearing to ease geopolitical concerns.

“Looking ahead, the market appears positioned for continued momentum if regional stability holds, though investors should monitor upcoming economic data releases for confirmation of this positive trajectory,” he said.

Sui South Gas remained the volume leader with 29.319 million shares, which closed higher by Rs2.98 to Rs40.25 per share. Cnergyico PK, with 27.367 million shares, followed it, which closed higher by two paisas to Rs7.11 per share.

Other significant turnover stocks included BO Punjab, K-Electric Ltd, Maple Leaf, Worldcall Telecom, Fauji Cement, Sui North Gas, At-Tahur Ltd, and DGK Cement. In the futures market, 333 companies recorded trading, 315 of which increased, 17 decreased, and one remained unchanged.