Key Takeaways
- The Pakistan Stock Exchange (PSX) gained over 1,000 points during intraday trade.
- Investor sentiment improved amid reports of mediation efforts between the US and Iran.
- Oil prices softened, supporting market recovery.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by over 1,000 points on Tuesday, reaching an intraday high of 178,370.45 points before easing to 177,023.97 points at the close of the session. The market opened in the green and saw significant gains early in the day, with the index climbing as much as 1,902.30 points by 9:39am.
The positive momentum was driven by reports of mediation efforts between the United States and Iran, which helped to improve risk appetite among investors. Awais Ashraf, director of research at AKD Securities, commented that 'oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran,' contributing to the market's recovery.
Investor sentiment was further bolstered by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery, and textile companies expected to post stronger-than-usual results. Topline Securities Ltd reported that strong late-session buying in heavyweight banking and refinery stocks erased sharp intraday losses, allowing the KSE-100 index to close marginally higher.
The market remained highly volatile throughout the session, reflecting cautious investor sentiment amid lingering geopolitical tensions and uncertainty in global energy markets. Trading activity was robust, with 221.59 million shares changing hands at a traded value of Rs13.63 billion.
Oil prices also softened on Tuesday, easing by 78 cents or 0.9% to $88.44 per barrel by 0415 GMT. US West Texas Intermediate crude was down 73 cents or 0.9% to $82.50 per barrel, while the more active contract for September delivery slipped 41 cents or 0.5% to $82.07 a barrel. These developments helped to support investor sentiment and contributed to the market's recovery.
The stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the KSE-100 index to close the session in the green with a meagre gain of 124.95 points or 0.07% to settle at 175,927.74.
The market's performance was driven by strong buying interest across key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies, cement, and power generation. The positive momentum is likely to remain unless there are any untoward developments on the US-Iran front.
The market extended the previous session’s late recovery as ‘oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran’.
Awais Ashraf, Director of Research at AKD Securities
Buying interest was witnessed across key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies, cement, and power generation.
Topline Securities Ltd, Reported by
