Stocks settle above 170,000 on renewed buying

The Pakistan Stock Exchange (PSX) witnessed a rebound on Friday, with the KSE-100 index surging above 171,000 points intraday, bolstered by positive economic and geopolitical developments. The index climbed 1,841.39 points, or 1.09%, to close at 170,884.59, driven by reduced crude oil prices due to easing supply concerns. Improved market sentiment was further fueled by hopes of renewed US-Iran negotiations and Saudi Arabia's efforts to restore its East-West pipeline, which could alleviate supply bottlenecks.

Key contributors to the index's gain included Fauji Fertiliser, United Bank, Meezan Bank, Lucky Cement, and Habib Bank, which together added 833 points. Trading volume surged by 49.14% to 576.25 million shares, while trade value increased by 11.53% to Rs22.40 billion. Arif Habib Ltd reported that the PSX concluded the weekend session positively.

On the economic front, Finance Minister Muhammad Aurangzeb indicated that Pakistan intends to seek an expansion of its 30 billion yuan swap line with China once the current agreement expires in 2027. He also expressed optimism about a US response to a proposed $10 billion exchange stabilization facility within two months. The nation's foreign exchange reserves reached $26.8 billion after receiving $3 billion from the Eurobond issuance during the week ending September 11.

Technically, buying interest is emerging at the July lows, and the close above 170,000 points underscores this as a critical area to watch in the coming week, according to the brokerage.