Selective buying lifts PSX after mid-session fall

Pakistan Stock Exchange (PSX) on Tuesday overcame a bout of profit-taking in the afternoon and ended trading on a firmer note as renewed buying helped the market recoup losses. Investor interest was bolstered by expectations of a breakthrough in efforts to resolve the US-Iran conflict, although profit-booking later in the session trimmed gains. The decline proved temporary as buyers returned to lift the market back into the green The benchmark KSE-100 index closed up 248.92 points, or 0.15%, at 171,402.08. During the proceedings, it hit the intra-day high of 171,680.74 and the low of 170,866.94. Oil and gas exploration, cement and power stocks led the recovery, while weakness in commercial banks and fertiliser shares kept the advance modest. According to Ahmed Sheraz at KASB KTrade, the KSE-100 closed up 249 points (+0.15%), with 123 milllion shares traded. The market remained mildly positive as easing geopolitical concerns and lower international oil prices supported sentiment. Oil and gas stocks staged a recovery after Brent crude slipped below $100 and traded around $98, easing concerns over inflationary pressures. Investor confidence was further supported by reports that Iran had conveyed to the US administration that it could reopen the Strait of Hormuz within seven days if Washington lifted the blockade. The development raised hopes of improved oil flows and a reduction in the geopolitical risk premium, supporting recovery in the oil segment, Sheraz added. He anticipated that the market would remain cautiously positive, with Brent prices, US-Iran developments and Hormuz shipping traffic being key drivers. "Oil & gas and cement sectors provided notable support during Tuesday's session while buying interest was also visible across pharma, power, technology and engineering stocks," commented JS Global analyst Mubashir Anis Naviwala. On the other hand, banks and fertiliser stocks remained relatively subdued. International oil prices eased to a two-week low amid expectations of improving supply from the Gulf region. Overall, the session reflected selective buying with a cautious tone as investors continued to monitor regional developments and oil-market conditions, Naviwala added. Arif Habib Limited Deputy Head of Trading Ali Najib said sentiment was initially fragile but the KSE-100 gained 249 points, or 0.15%, to close at 171,402. Value hunters showed renewed interest as oil prices fell on easing supply concerns and diplomatic efforts to reopen the Strait of Hormuz gained momentum. In corporate news, Sitara Petroleum Service posted FY26 earnings of Rs4,976 million, up 69% year-on-year, while 4QFY26 profit fell 10% to Rs570 million due to inventory losses, lower supplies and the absence of volumetric discounts. Dealer margins stood at Rs8.64/litre. The company declared a final cash dividend of Re1/share, taking FY26 payout to 34%. Mari Energies, PPL, Hub Power, Fauji Cement and Lucky Cement added 233 points, while Bank AL Habib, Fauji Fertiliser, MCB Bank, Bank Alfalah and Askari Bank dragged the index down by 216 points. He expected the market to stay volatile, with selective buying if geopolitical tensions eased further and oil prices declined. Cumulatively, trading volumes decreased to 641.8 million shares compared with Monday's tally of 692.9 million. In the ready market, shares of 494 companies were traded. Of these, 226 stocks closed higher, 221 fell and 47 stood unchanged. Tasdeeq Information led the volumes with trading in 133.2 million shares, losing Rs0.09 to close at Rs4.91. Foreign investors bought shares worth Rs323.7 million, the National Clearing Company reported.