Stocks stage mild recovery on value-hunting

KARACHI - Despite ongoing tensions in the Middle East, the Pakistan Stock Exchange (PSX) managed to break a four-day losing streak on Friday. The KSE-100 index closed above 170,000 points, up 1,646.82 points (0.98%), after reaching a low of 166,141.18 earlier in the day. This recovery was fueled by attractive valuations that rekindled buying interest.

The index opened lower due to concerns over economic challenges, such as expensive energy imports and inflation. However, fears subsided as reports emerged about the six-member Gulf bloc considering a meeting with Iranian officials to discuss the future of the Strait of Hormuz. This news led to a decline in crude oil prices, improving market sentiment and allowing the index to recover.

Meezan Bank, Fauji Fertiliser, Lucky Cement, Pakistan Petroleum, Oil and Gas Development Company, and Engro Fertiliser collectively added 1,032 points to the benchmark. Trading volume increased by 9.35% to 687 million shares, while turnover value rose by 24.75% to Rs33.7bn.

In its market commentary, Arif Habib Ltd noted that the mild recovery helped reduce the weekly fall to 2.75% week-on-week. On the corporate front, Kot Addu Power Company reported impressive financial results for Q4FY26, with earnings per share rising 7.7 times to Rs1.14 year-on-year. This improvement was driven by a turnaround in gross profit, which reached Rs507m, up from just Rs11m in the previous year.

The company's PPA with Kapco expired in June 2021, after which it entered into a three-year tripartite Power Purchase Agreement.