PSX roars back as US-Iran tensions ease

KSE-100 jumps over 5,300 points as Brent plunges 4.2% to $92.74; autos, banks, cement and energy stocks lead buying

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Photo: Express

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KARACHI:

Equities at Pakistan Stock Exchange (PSX) managed a muted cheer on Monday as investors took the latest signs of de-escalation between the United States and Iran as a step towards putting the conflict on hold, lifting risk appetite and sending the benchmark KSE-100 Index soaring over 5,000 points in early trading.

At 9:35am, the KSE-100 index had jumped 5,004.48 points, or 2.93%, to 176,025.68, before extending gains to 5,370.70 points, or 3.14%, at 12:14pm, when the index stood at 176,391.90.

The benchmark was trading at 176,354.07, up 5,332.87 points, or 3.12%, from the previous close of 171,021.20. The index hit an intraday high of 176,392.61 and a low of 175,153.16.

The buying spree, however, came against a backdrop of cautious optimism as investors weighed the possibility of a pause in hostilities, with Brent crude tumbling 4.2% to $92.74 a barrel in early Asian trade following the US military’s temporary halt to its two-week-long strikes.

Healthy buying activity was seen across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation.

The sharp rebound followed a bruising previous session and reflected a broader improvement in investor sentiment, as global markets dared to hope that the US-Iran confrontation could be contained and that the immediate threat of further escalation was receding.

The prospect of easing geopolitical tensions also weighed on crude prices, with falling oil prices potentially offering some relief to oil-importing economies such as Pakistan.

Trading activity remained strong, with 195.01 million shares changing hands, while the traded value stood at Rs12.61 billion.