Bulls in charge as PSX opens week by gaining 2,100 points

The Pakistan Stock Exchange (PSX) opened the week on a positive note, surging more than 2,100 points to surpass the 178,000 mark. This upward trend was driven by a decrease in global oil prices following remarks from U.S. President Donald Trump about initiating fresh talks with Iran. At 11 am, the KSE-100 index had already climbed by 2273.78 points, climbing from 176,094.11 points the previous close.

By 2:18 pm, gains had narrowed to 1781.72 points, but the index recovered after a dip to 177,759.88 points and ultimately closed at 178,200.02 points, up 2,105.91 points (1.20 percent) from the prior close.

Topline Securities Ltd. attributed the rally to a "renewed risk appetite," citing signs of reduced regional tensions and lower energy prices. FFC, MEBL, LUCK, PPL, and ENGROH were among the top contributors, collectively adding around 699 points to the benchmark index. Market activity also surged, with traded volume rising to 785 million shares and traded value reaching Rs33bn, according to the firm.

The positive momentum was further fueled by investors responding to the easing of geopolitical tensions. Mettis Global suggested that traders used the news of Trump canceling a planned strike on Iran as a cue to mitigate concerns of a broader regional conflict. Awais Ashraf, director of research at AKD Securities, added that investor optimism continued from the previous week, fueled by anticipation of a rapid resolution between the U.S. and Iran.

Ashraf noted that "the return of inflation to single digits in July, with data due today, would further bolster market sentiment by strengthening hopes of monetary easing, thereby boosting investor confidence."

Despite the bullish start to the fiscal year, the KSE-100 index closed the previous month lower. Topline Securities Ltd. reported a decline of 4,208 points or 2.3 percent month-on-month as heightened U.S.-Iran tensions drove up global crude oil prices, adversely impacting investor sentiment. Monthly average daily traded volume stood at 845 million shares, with an average daily traded value of Rs37.5bn.