KSE-100 today: PSX jumps 1,455 points to 168,019 on US-Iran talk hopes
The KSE-100 closed at 168,018.86 on Tuesday, up 0.87%, as oil eased on US-Iran deal hopes. Which stocks led, how much traded and why brokers expect swings.
The KSE-100 index closed at 168,018.86 points on Tuesday, 3 November, up 1,454.80 points or 0.87%, as falling oil prices and hopes of a US-Iran deal brought buyers back to the Pakistan Stock Exchange.
It followed a flat Monday when it gained just 155 points to close at 166,564.07.
What moved the market
Oil is the short answer. Topline Securities said the gain came mainly from lower international crude prices, driven by optimism over negotiations between the United States and Iran. Pakistan imports most of its fuel, so cheaper oil means a smaller import bill, less pressure on the rupee and, eventually, room for lower petrol prices.
The day was not a straight line up. The index dipped to an intraday low of 167,308.65 around midday as some investors took profits, then climbed in the last hours of trading to touch a high of 168,469.78 before settling just below it.
Which stocks led
Fauji Fertilizer (FFC), Engro Holdings, Pakistan Services (PSEL), Meezan Bank and Engro Fertilizers did most of the lifting, adding about 701 points between them. Pakistan Services, the Pearl-Continental hotels company, was in focus on the same day Fauji Foundation disclosed a 19.7% stake in it.
Trading was busier than on Monday:
- Volume: 517.34 million shares, up from 443.43 million
- Value: Rs20.70 billion, up from Rs17.73 billion
- Breadth: 270 shares rose, 189 fell and 41 were unchanged
- Most traded: Cnergyico PK (114.83 million shares), Pervez Ahmed (64.94 million) and Pakistan Refinery (29.59 million)
The rupee barely moved, closing at 276.71 against the dollar in the interbank market, a gain of one paisa.
What brokers are saying
Saad Hanif of Ismail Iqbal Securities called the recovery headline-driven, with investors buying back into banks, oil and gas explorers and cement, and said he expects volatility to continue. Waqas Ghani of JS Global said shares remain positive on expectations of progress in the US-Iran talks.
That is the risk in plain words: the rally rests on talks between two other countries. The US struck an Iranian island near the Strait of Hormuz on Monday, and a Pakistan-bound LNG tanker was attacked near Hormuz at the weekend. Any breakdown in diplomacy, or a fresh jump in oil, could undo Tuesday’s gains as quickly as they came.
The gain comes after October, the index’s second losing month in a row.
This is information, not investment advice.
