Stocks settle above 170,000 on renewed buying

Dawn reported that the Pakistan Stock Exchange extended its overnight rebound on Friday, with the KSE-100 index climbing above 171,000 at one point during the session. Better economic and geopolitical news lifted investor confidence, encouraging buyers to step in at prices they viewed as attractive. Topline Securities put the closing level at 170,884.59, a gain of 1,841.39 points or 1.09 per cent.

Crude oil prices stayed under pressure as supply worries eased, while hopes of renewed US-Iran diplomacy also helped sentiment. Saudi Arabia's work to repair its damaged East-West pipeline could ease supply strain further. Fauji Fertiliser, United Bank, Meezan Bank, Lucky Cement and Habib Bank led gains, adding 833 points together. Turnover jumped 49.14 per cent to 576.25 million shares, while traded value rose 11.53 per cent to Rs22.40 billion.

Finance Minister Muhammad Aurangzeb said Pakistan plans to ask China for a larger arrangement than the current 30bn yuan swap, which ends in 2027. He also expects Washington to respond within two months on a $10bn exchange stabilisation facility under discussion. Foreign exchange reserves climbed to $26.8bn after $3bn from a Eurobond issue arrived in the week ended Sept 11. The brokerage added that buyers are returning near the July lows, and that holding above 170,000 keeps this zone a major focus for the next week.