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

The Pakistan Stock Exchange (PSX) kicked off the week on a high note, surging more than 2,100 points to trade above 178,000 points. This upward trend occurred as global oil prices fell, following U.S. President Donald Trump's announcement of fresh talks with Iran. At 11 am, the KSE-100 index soared 2,273.78 points, climbing from 176,094.11 points.

By 2:18 pm, gains had slowed to 1,781.72 points. However, after dipping to 177,759.88 points intraday, the index rebounded and closed at 178,200.02 points — up 2,105.91 points (1.20%) from the prior close.

Topline Securities Ltd. attributed the rally to a "renewed risk appetite," with investors welcoming signs of eased regional tensions and lower energy prices. FFC, MEBL, LUCK, PPL, and ENGROH were the leading contributors, collectively giving the index roughly 699 points. Market activity also heated up, with total traded shares rising to 785 million and traded value reaching Rs33 billion.

Mettis Global's financial portal noted the positive momentum at PSX stemmed from investors reacting to eased geopolitical tensions, following Trump's call off a planned strike on Iran. This move reduced immediate concerns of broader regional conflict. Awais Ashraf, director of research at AKD Securities, explained that investor optimism continued from the previous week, buoyed by expectations of a swift U.S.-Iran agreement.

The return of inflation to single digits in July, with data forthcoming, also provided a further catalyst for the market by strengthening hopes of monetary easing, thereby bolstering investor confidence.

The KSE-100 index concluded the first month of the current fiscal year in the red. Topline Securities Ltd. reported the index had dropped 4,208 points or 2.3% month-on-month during July. This decline was driven by heightened U.S.-Iran tensions, which pushed global crude oil prices upward and dampened investor sentiment. Average daily trading volume during the month hit 845 million shares, while average daily traded value stood at Rs37.5 billion.