PSX surges 5,449 points as US-Iran tensions ease

Pakistan stocks staged a strong recovery on Tuesday, November 10, following a long weekend, as easing geopolitical tensions between the United States and Iran and declining international oil prices boosted investor confidence.

The benchmark KSE-100 Index gained 5,448.56 points, or 3.13%, to close at 179,335.24, after touching an intraday high of 179,424.04 and a low of 176,273.72.

The rally followed a three-day break, with the Pakistan Stock Exchange (PSX) closed on Monday for Allama Iqbal Day.

Which sectors and stocks led the rally?

Commercial banks led the rally, contributing approximately 2,109 points to the KSE-100, followed by cement companies with 980 points and oil and gas exploration firms with 582 points. Together, the three sectors added approximately 3,671 points. Fertilizer and power generation companies also supported the advance, contributing 473 and 346 points, respectively.

United Bank Limited (UBL), Lucky Cement, Fauji Fertilizer Company (FFC), Meezan Bank and Hub Power Company were among the leading contributors, collectively adding approximately 1,982 points to the benchmark index.

UBL led individual contributions with 630 points, followed by Lucky Cement with 378 points, FFC with 349 points, Meezan Bank with 334 points and Hub Power with 291 points, market data showed.

What drove the recovery in investor sentiment?

Investor confidence improved following US President Donald Trump's remarks playing down the need for further military action against Iran, easing concerns over a possible escalation in regional tensions and disruptions to global oil supplies.

International crude oil prices also declined, providing support to the market as lower energy costs could ease pressure on Pakistan's import bill, current account and inflation outlook.

Some market analysts also pointed to the potential for monetary easing if lower oil prices were sustained.

On the macroeconomic front, Pakistan's workers' remittances increased 8.5% month over month to USD 3.89 billion in October, according to data released by the State Bank of Pakistan (SBP).

Remittances also increased 13.8% year over year, providing additional support to the country's external account position.

How did trading activity perform?

Trading in KSE-100 constituent stocks increased to approximately 437 million shares, compared with 196 million shares in the previous session on Friday.

Across the broader market, turnover reached approximately 972 million shares, with traded value standing at PKR 50.7 billion, according to Ismail Iqbal Securities.

Cnergyico led the volume chart with approximately 70.09 million shares traded, although its share price declined 6.2% during the session.

The strong close reflected renewed buying interest in major index stocks, with investors responding to improving geopolitical sentiment, lower oil prices and stronger foreign exchange inflows.