Key Takeaways
- The Pakistan Stock Exchange (PSX) saw a significant gain of over 2,000 points during intraday trade.
- Investors responded positively to easing geopolitical tensions after Trump called off a planned strike on Iran.
- Global oil prices dropped, influencing the PSX's performance.
The Pakistan Stock Exchange (PSX) opened the week with strong gains, adding over 2,000 points during intraday trade. At 11am, the KSE-100 index had risen by 2,273.78 points from its previous close of 176,094.11 points.
Mettis Global, a web-based financial portal, attributed this positive momentum to investors taking cues from reduced concerns over regional conflict following President Donald Trump’s decision to cancel a planned strike on Iran.
However, the KSE-100 index ended July with a slight decline of 4,208 points or 2.3 per cent month-on-month, as escalating US-Iran tensions had previously pushed global crude oil prices higher, dampening investor sentiment.
Despite the overall downward trend for the month, the intraday gains on the first trading day of August were notable. The average daily traded volume was recorded at 845 million shares, with an average daily traded value of Rs37.5 billion.
Topline Securities Ltd reported that the KSE-100 index closed July lower due to increased tensions between the US and Iran, which had driven global crude oil prices up, affecting investor confidence negatively.
The geopolitical developments seemed to have a temporary positive impact on the PSX, as investors responded favourably to the easing of tensions. However, long-term trends remain influenced by broader economic factors such as global commodity prices.
