KSE-100 Extends Recovery, Closes 120 Points Higher After Volatile SessionBusiness

<h2>Market movers</h2> Buying interest at lower levels, particularly in oil and gas and refinery stocks, helped the market recover from intraday weakness, according to brokerage analysts. United Bank (UBL) contributed the most to the index gain, adding 97.41 points, followed by Systems Limited (65.08 points), Pakistan State Oil (48.44 points), Pakistan Telecommunication (45.78 points) and K-Electric (43.98 points).

On the losing side, Mari Petroleum dragged the index down by 64.25 points, followed by Meezan Bank, Lucky Cement, Hub Power and Oil and Gas Development Company. Sector-wise, technology and communication stocks led the gains with a contribution of 119.37 points, followed by oil and gas marketing companies and commercial banks. Oil and gas exploration, fertilizer and cement stocks faced pressure and capped the upside.

<h2>Trading activity</h2> Trading activity strengthened considerably. Ready-market turnover increased to 586.86 million shares from 432.02 million on Tuesday, while traded value rose to Rs22.37 billion from Rs20.14 billion. Overall market capitalisation increased by Rs35.3 billion to Rs18.75 trillion. Market breadth remained favourable, with 272 companies advancing, 184 declining and 45 remaining unchanged out of 501 active issues. K-Electric led the volume chart, followed by Cnergyico PK and Pak Refinery.

Brokerages noted that trading remained cautious as international oil prices edged higher compared to the previous session, keeping investors watchful. Brent crude held above $100 a barrel amid renewed Middle East tensions, while global equities were mixed — Asian markets were slightly weaker even as US stocks touched new highs.

<h2>Policy backdrop</h2> The session came as negotiations between Pakistan and the International Monetary Fund on the ongoing programme review entered their final stretch, with a $1.2 billion combined disbursement at stake. In a related development, the Federal Board of Revenue updated the IMF that 1,016 returns had been filed by retailers and shopkeepers under the Aasan Tax Scheme, a programme aimed at bringing small businesses into the documented tax net.

Analysts said the market would continue to take cues from the outcome of the IMF review, global crude price movements and domestic macroeconomic signals in the sessions ahead.