KARACHI: Despite elevated oil prices and the State Bank’s interest rate hike to curb inflation, the Pakistan Stock Exchange (PSX) extended its recovery rally for a third straight session on Wednesday.
The benchmark KSE-100 index climbed above 166,000 intraday before profit-taking at higher levels pared some gains. It nevertheless settled above the key psychological mark of 165,000, buoyed by hopes for a return to peace amid Pakistan-led diplomatic efforts to resolve the US-Israel war on Iran, which began on Feb 28.
Equity investors are exercising caution as the conflict has started to affect Pakistan, which relies on energy imports through the Strait of Hormuz, putting macroeconomic stability to a test due to costly energy imports and slowing economic activity due to the high cost of inputs and expensive money, as the SBP raised its policy rate to 12pc from 11.5pc.
Oil prices rose around 1pc on Wednesday after an attack on a refinery in Saudi Arabia, the world’s top crude exporter, renewed concerns about supply risks due to the conflicts in the Middle East.
Index settles above 165,000 despite high oil prices
Brent crude futures rose $1.14, or 1pc, to $115.02 a barrel. US West Texas Intermediate crude was up $1.71, or 1.7pc, at $101.61.
Topline Securities Ltd said the index extended its recovery, gaining 1,269.55 points, or 0.77 per cent, to close at 165,736.76. The benchmark hit an intraday high of 166,100.34 and a low of 164,355.83, reflecting sustained buying interest and improving investor sentiment.
The bullish momentum was primarily driven by better-than-expected corporate results, which helped shift market sentiment and renewed investor confidence in the earnings outlook. The encouraging results provided fresh impetus to the market, with investors showing increased interest in fundamentally strong stocks.
Arif Habib Ltd said Engro Holdings Ltd reported consolidated profit after tax of Rs10,469 million (EPS: Rs8.69) in 3QCY26, up 17pc year on year, driven primarily by higher earnings from Engro Fertiliser, the start of earnings from its tower business, and improved profitability at Frieslandcampina Engro Pakistan Ltd. The company did not announce any dividend for the quarter.
Fauji Fertiliser, National Bank, Hub Power, MCB Bank and Bank Alfalah led the index’s gains, adding about 833 points to the benchmark and underscoring strong support from heavyweight stocks.
Investor participation also improved compared with the previous session, with trading volume surging 43.82 per cent to 578 million shares and traded value rising 45.01pc to Rs26.2bn. Pervez Ahmed Co led the volume chart with 58m shares.
In the T-Bill auction, investors, mostly banks, offered Rs4,868bn bids against the target of Rs1,650bn and maturity of Rs1,195bn. Yields increased by 25-61bps across tenors.
Published in Dawn, October 29th, 2026
