Pakistan’s stock market on Tuesday surged over 5,000 points as investors drew strength from the talk of global calm despite failure of US-Iran talks on ending the Middle East war.<\/p>\n
The rally reflected expectations of potential resumption of diplomatic engagements between the US and Iran, which revived hopes of a de-escalation in the conflict that had shaken global financial markets. At 9:39 am, the benchmark KSE-100 index was hovering around 164,322, with handsome gains of 3,731 points, or 2.32%.<\/p>\n
The shift in sentiment came in stark contrast to the previous session, when the market endured heavy losses, falling 6,600 points, following collapse of peace negotiations and a spike in global oil prices. During Tuesday’s session, the market touched the intra-day high of 165,764 and low of 163,417. At close, the index recorded a jump of 5,043.51 points, or 3.14%, and settled at 165,634.85.<\/p>\n
“Investors are optimistic about the likely resumption of talks between the US and Iran on resolving the conflict,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.<\/p>\n
Assurances from Saudi Arabia and Qatar to bridge Pakistan’s external financing gap, created by the payment of $3.5 billion to the UAE, and higher imports due to elevated oil prices also helped lift investor sentiment. “This is likely to result in timely approval of $1.2 billion disbursement by the International Monetary Fund (IMF),” he said.<\/p>\n
KTrade Securities equity trader Ahmed Sheraz wrote that the Pakistan Stock Exchange (PSX) staged a strong rebound, with the KSE-100 closing up 5,044 points (+3.14%), as sentiment sharply reversed following encouraging geopolitical developments.<\/p>\n
The rally was driven by improved investor confidence after positive signals from US-Iran negotiations, where progress was indicated despite no final agreement. Further talks are expected in the coming days. Additionally, easing global risk perception, along with a pullback in oil prices towards $97-99 per barrel, provided support to equities. Positive cues from US markets and strength across Asian bourses also reinforced the positive momentum. The upside was broad-based, with heavyweights across commercial bank, cement, E&P and fertiliser sectors driving the index higher. UBL, Engro, Hub Power, OGDC, Habib Bank, National Bank and MCB Bank contributed significantly, Sheraz added.<\/p>\n
JS Global analyst Nawaz Ali observed that buying activity with improved investor sentiment led to over 5,000-point surge in the KSE-100 index, where significant contribution came from index heavyweights such as UBL, Lucky Cement, Fauji Fertiliser, Engro Holdings and Hub Power. Hopes of easing US-Iran conflict contributed to a decline in crude oil prices and a recovery in global equity markets; both of which positively influenced investor confidence. The market was likely to stay sensitive to geopolitical developments and a sustained upward momentum would depend on greater clarity on the external front, Ali said.<\/p>\n
According to Arif Habib Limited (AHL), the PSX took a solid move higher to regain the 165k level. On the KSE-100, 93 shares rose while six fell, with UBL (+3.85%), FFC (+2.45%) and Lucky Cement (+5.93%) contributing the most to the index gains.<\/p>\n
The United States and Iran were weighing further negotiations to extend ceasefire and the second round of talks was expected either in Riyadh or Islamabad. In a major development, Saudi Arabia extended $3 billion in deposits to Pakistan. At the PSX, support was found at the 200-day moving average, which was structurally constructive and set the groundwork for a sustained move higher, AHL said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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