PSX extends recovery for third straight session

KARACHI: The Pakistan Stock Exchange (PSX) continued its recovery rally for a third consecutive day on Wednesday, despite rising oil prices and the State Bank's decision to hike interest rates in an attempt to control inflation. The KSE-100 index surged above 166,000 during the day but dipped slightly due to profit-taking. However, it ultimately closed above the significant psychological level of 165,000, fueled by optimism surrounding the prospects of peace following the launch of Pakistan-led diplomatic talks to resolve the US-Israel conflict in Iran, which began on February 28.

Investors are exercising caution, as the Iran-Iraq war has impacted Pakistan's economy by increasing energy costs and slowing economic activity due to high input prices and interest rates, with the State Bank of Pakistan raising its policy rate to 12% from 11.5%. Oil prices increased by around 1% on Wednesday following an attack on a Saudi Arabian refinery, reigniting concerns about potential supply disruptions caused by the Middle Eastern conflicts.

The KSE-100 index ended the day at 165,736.76, marking a gain of 1,269.55 points, or 0.77%, with the benchmark reaching an intraday peak of 166,100.34 and a low of 164,355.83. The positive momentum was primarily driven by strong corporate performances, which boosted market sentiment and renewed investor confidence in the earnings outlook.

Engro Holdings Ltd reported a consolidated profit after tax of Rs10,469 million (EPS: Rs8.69) in the third quarter of 2026, a 17% year-on-year increase, primarily due to higher revenues from Engro Fertiliser, the initiation of earnings from its tower business, and improved profitability at Frieslandcampina Engro Pakistan Ltd. Fauji Fertiliser, National Bank, Hub Power, MCB Bank, and Bank Alfalah were among the top gainers, contributing approximately 833 points to the index.

Trading volume increased by 43.82% to 578 million shares and traded value rose by 45.01% to Rs26.2bn. Pervez Ahmed Co led the trading volume chart with 58 million shares. In the T-Bill auction, investors, mainly banks, submitted bids totaling Rs4,868bn against a target of Rs1,650bn and a maturity of Rs1,195bn, resulting in yields rising by 25-61 basis points across tenors.