PSX climbs 830 points on US-Iran talks optimism

The Pakistan Stock Exchange's benchmark KSE-100 index rose 830.43 points, or 0.48%, to close at 172,232.51 on Wednesday, as investors reacted to reports of a possible US-Iran diplomatic breakthrough and softer crude prices.

The Express Tribune reported that buying was broad across auto assemblers, cement, commercial banks, oil and gas exploration, oil marketing and refiners. KTrade Securities said fertiliser, commercial banks, refinery and oil and gas sectors led gains, with Fauji Fertiliser, UBL, Meezan Bank and Attock Refinery among major contributors. Trading volumes reached 773.6 million shares, up from 641.8 million a day earlier.

Oil prices were a central driver. The Express Tribune said Brent crude traded near $98 a barrel and WTI fell below $90, easing inflation worries, and that oil was near its lowest level in more than two weeks. But Pakistan Today reported that oil extended gains by more than $2, citing little sign of progress in US-Iran talks. The two accounts differ on the direction of crude prices during the session.

Ali Najib, deputy head of trading at Arif Habib Limited, told the Express Tribune that a meeting between US and Iranian delegations on the sidelines of the UN General Assembly, described as constructive by both sides, helped calm geopolitical concerns. He added that the market would remain sensitive to oil prices, geopolitical developments and foreign and local flows.

On the domestic front, the arrival of an IMF staff mission in Pakistan to begin talks on the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility gave additional support. In the second half, refinery stocks saw buying on market talk that a refinery policy agreement could be signed on Thursday.

Ismail Iqbal Securities noted the positive close was driven by fertiliser, banks and exploration and production sectors, which together added 497 points. Of 496 companies traded, 262 advanced, 196 declined and 38 were unchanged. Cnergyico was the volume leader with 150.3 million shares, rising Rs1.11 to Rs14.31. Foreign investors sold shares worth Rs547.4 million, according to the National Clearing Company.