The Pakistan Stock Exchange (PSX) posted modest gains in cautious trading, supported by easing international oil prices and signs of potential de-escalation in tensions between the United States and Iran.
The benchmark index opened on a positive note and climbed to an intraday high of 848 points at 171,732.62 before profit-taking pared some of the gains. It eventually closed at 171,153.17, up 268.58 points, or 0.16 per cent.
Lower oil prices provided some relief to investors by reducing concerns over inflation, the external account and broader macroeconomic stability. Hopes for diplomatic efforts to ease US-Iran tensions also contributed to improved risk appetite.
Lucky Cement, Attock Refinery, Fauji Fertiliser, Mari Energies and Engro Fertiliser were among the leading contributors to the index, collectively adding around 254 points.
Investor sentiment remained mixed as expectations of additional crude supplies from Saudi Arabia helped ease concerns over global oil availability. However, renewed tensions involving Saudi Arabia and Iran-backed Houthi forces continued to weigh on market confidence.
In the energy sector, power generation increased 5.1 per cent year-on-year to 14,943 GWh in August. Generation costs, meanwhile, rose 38 per cent to Rs10.01 per kWh, prompting distribution companies to seek a fuel cost adjustment of Rs1.73 per kWh.
Market participation improved during the session, with trading volume increasing 20.23 per cent to 692.8 million shares. Traded value, however, declined 10.3 per cent to Rs20.1 billion. Tasdeeq Information led trading activity with 119 million shares changing hands.
The market is expected to remain volatile, with selective buying dependent on developments in geopolitical tensions and global oil prices. Energy costs, external-sector pressures and the upcoming International Monetary Fund (IMF) review are also expected to remain important factors influencing market direction.
