{
  "id": 16844253,
  "title": "Equities extend rally on peace optimism",
  "url": "https://urgent.news/2026/10/28/equities-extend-rally-on-peace-optimism",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T01:51:27.000Z",
  "source": {
    "name": "Dawn Business",
    "slug": "dawn-business",
    "url": "https://www.dawn.com/news/2040334/equities-extend-rally-on-peace-optimism"
  },
  "original_language": "en",
  "account": "The Pakistan Stock Exchange (PSX) witnessed a continuation of its recovery trend on Tuesday, bolstered by favorable market valuations and optimism surrounding the Middle East conflict. Equity investors perceived the Central Bank of Pakistan's modest 50 basis points policy rate hike as a carefully calibrated measure to counter inflation stemming from geopolitical tensions. Consequently, the benchmark index surges above 164,000 points. Topline Securities Ltd reported the index's robust recovery, which gained 1,428.73 points, or 0.88 percent, to close at 164,467.20. Despite the policy rate increase, buying interest persisted across various sectors, with particular focus on cement, automobile, and banking stocks. Stocks such as Fauji Cement Company, Maple Leaf Cement Factory, Ghandhara Automobiles Ltd, Ghandhara Industries Ltd, Pakistan International Bulk Terminal, and Cnergyico PK attracted significant attention due to recent earnings announcements and improved profitability. The index reclaimed its 164,000 mark as heavyweight stocks led by MCB Bank, Fauji Fertiliser, United Bank, Pakistan Petroleum, and National Bank added approximately 490 points to the benchmark, underscoring strong support from major players. Trading volume surged by 6.90 percent to 402 million shares, while traded value increased by 11.59 percent to Rs18.06 billion. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the market's strong performance to investor relief following the moderate rate hike, which was lower than the 100 basis points anticipated by some market participants given the current geopolitical situation and elevated oil prices. The rally was further supported by easing geopolitical tensions following diplomatic efforts by the 'Makkah Pact' countries—Pakistan, Saudi Arabia, and Türkiye—through high-level talks in Iran to seek a peaceful resolution to the US-Iran conflict. On the macroeconomic front, the Central Bank of Pakistan reported $17.2 billion in cumulative net foreign exchange interventions between June 2024 and July 2026, reflecting continued efforts to manage foreign exchange market liquidity and reserve accumulation. Analysts anticipate a positive market bias, buoyed by relief over the smaller-than-expected rate hike and optimistic diplomatic efforts to de-escalate US-Iran tensions. However, lingering geopolitical uncertainty, rising oil prices, and evolving macroeconomic conditions may sustain investor caution. Near-term momentum is expected to be driven by selective buying amid ongoing market volatility.",
  "summary": "KARACHI: The Pakis_tan Stock Exchange (PSX) extended its overnight recovery rally on Tuesday, as attractive valuations continued to draw buying interest. Equity investors viewed the policy rate hike, aimed at curbing inflation stemming from the Middle East conflict, as a balancing act. The benchmark index consequently settled above 164,000 points. Topline Securities Ltd said the index staged a…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}