ISLAMABAD: Pakistan stocks rose 6.7 percent month-on-month, lifted by improved investor sentiment on signs of progress in peace talks between the United States and Iran, a Pakistani market research firm said.
The benchmark KSE-100 index closed at 173,962.81, up 2,237.52 points, or 1.3 percent, from the previous close of 171,725.29 on the last trading day of May, according to data from the Pakistan Stock Exchange.
US–Iran peace talks have shown limited progress, but no final agreement has been reached so far. Negotiations continue on key issues including Iran’s nuclear enrichment program, sanctions relief, and control of the Strait of Hormuz, through which one-fifth of the world’s oil passes. Both sides have reportedly agreed on some framework ideas, but major disputes remain unresolved.
“KSE 100 Index gained 6.7 percent on MoM basis, this positivity can be attributed to ceasefire between US and Iran where both sides have shown restrained and there has been progress on peace talks, resulting in improvement in investor sentiment,” Topline Securities said in its monthly review on Friday.
“Average daily traded volume and value during the month stood at 709mn shares and PKR.31bn respectively.”
Foreign corporations and local companies sold equities worth $21 million and $4 million as of the previous trading day’s close on May 25, while individuals and insurance companies purchased equities worth $6.5 million and $4.4 million.
Topline highlighted that the major developments in May included Pakistan’s consumer price index clocking it at 10 percent compared to 7.3 percent in April, Pakistan’s central bank receiving a $1.3 billion tranche from the International Monetary Fund, an increase in Pakistan’s car sales in April by 22,015 units, marking a 42 percent month-on-month increase, and remittances for the month of April coming in at $3.5 billion.
