Key Takeaways
- The Pakistan Stock Exchange (PSX) saw a significant gain of over 2,837 points.
- The KSE-100 index closed at 178,123.57 points on Thursday.
- US President Donald Trump's remarks about Iran influenced market sentiment.
The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Thursday, with the KSE-100 index gaining over 2,837 points. This marked a positive change of 1.62 percent and brought the closing value to 178,123.57 points from 175,285.78 points recorded on Wednesday.
According to official reports, this significant rise in the KSE-100 index was part of a broader recovery seen across the market. The PSX had experienced a notable decline on Tuesday due to panic-driven selling amid renewed tensions between the US and Iran, which heightened concerns about regional stability.
Awais Ashraf, director of research at AKD Securities, attributed the positive momentum in the stock market to President Trump's remarks that Tehran was eager to reach a deal with Washington. He noted, 'They want to settle so badly. They don’t like what we’re doing, and they do want to settle.'
Additionally, stability in oil prices over the past two days has contributed to increased investor confidence. Brent crude futures initially rose for four consecutive sessions but later slipped 24 cents, or 0.28 percent, to $84.95 a barrel by 9:35am PKT, while US West Texas Intermediate futures fell 15 cents, or 0.19 percent, to $79.45 a barrel.
The market's recovery came after KSE-100 experienced value-hunting by equity investors on Wednesday, partially recovering losses from Tuesday’s significant drop of 6,408.23 points due to renewed fighting between the US and Iran, which heightened concerns about regional stability.
Analysts observed that the sustained positive momentum at the stock market is a reflection of investor confidence in the face of geopolitical uncertainties. The KSE-100 index surged by around 2,600 points during early trade on Thursday to stand at 177,890.27 points by 11:04am.
The recovery in the stock market is seen as a positive sign for Pakistan’s economic health and investor sentiment. However, ongoing geopolitical tensions continue to cast a shadow over the market's future trajectory.
They want to settle so badly. They don’t like what we’re doing, and they do want to settle.
Awais Ashraf, Director of Research at AKD Securities
