KSE-100 gains over 950 points in volatile session, trims early rally on US-Iran tensions

The Pakistan Stock Exchange (PSX) observed volatile trading session, with the benchmark KSE-100 Index gaining over 950 points on Monday.

The stock market opened on a strong note, witnessing an aggressive rally that pushed the benchmark index to its intra-day high of 167,245.54, indicating robust early buying interest and positive sentiment at the start of trading.

However, the initial surge was followed by a phase of consolidation, with the index moving sideways through much of the midday session.

In the final hours of trading, the index came under sharp selling pressure amid reports of renewed tensions between the US and Iran.

At close, the KSE-100 Index settled at 163,948.94, up by 954.77 points or 0.59%.

“The local bourse opened on a strong footing, buoyed by declining oil prices, with the index rallying to an impressive intra-day gain of 4,251 points. However, late-session jitters emerged as geopolitical tensions escalated, with reports of a missile strike near the Strait of Hormuz dampening sentiment and triggering profit-taking,” brokerage house Topline Securities said in its post-market report.

Index heavyweights including FFC, UBL, MCB, OGDC, and HUBC led the charge, collectively contributing 543 points to the index, it added.

During the previous week, Pakistan’s equity market endured sustained pressure as persistent geopolitical uncertainty and tightening financial conditions dampened investor sentiment.

The benchmark KSE-100 Index declined by 4.5%, shedding 7,677.87 points on a week-on-week basis to close at 162,994.17 points.

Internationally, shares edged higher while oil prices flatlined in Asia on Monday, as ​investors drew comfort from signs of patchy progress in settling the Middle East conflict at the start of a week packed with ‌earnings and key economic data.

President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait of Hormuz on Monday morning, but gave no details of the plan.

A statement from Central Command said support would include guided-missile destroyers, over 100 land and sea-based aircraft and 15,000 service members.

Iran earlier said that the US had responded to its 14-point ​proposal via Pakistan and that it was reviewing the response, though Trump said it was unlikely to be acceptable.

Brent crude futures were flat at $108.30 ​per barrel, having recovered from an initial drop of more than 2%, while US crude was steady at $102.01.

Dealers noted a bulk carrier ⁠had reported being attacked by multiple small craft while transiting Iran’s Sirik on Sunday, and it was not clear how many ships would try and run the ​Strait of Hormuz even with Navy protection.

A holiday in Japan made for thin trading conditions, leaving Nikkei futures up only modestly at 59,630 versus a cash close ​of 59,513. MSCI’s broadest index of Asia-Pacific shares outside Japan  gained 0.6%, while South Korean stocks returned from holiday with a jump of 2.6%.

EUROSTOXX 50 futures and DAX futures each added 0.1%, while FTSE futures dipped 0.4%.

Meanwhile, the Pakistani rupee strengthened against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 278.76, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 696.70 million from 837.37 million recorded in the previous close.

The value of shares dropped to Rs34.91 billion from Rs36.34 billion in the previous session.

Hascol Petrol was the volume leader with 51.51 million shares, followed by Cnergyico PK with 50.16 million shares, and Sui South Gas with 49.67 million shares.

Shares of 487 companies were traded on Monday, of which 295 registered an increase, 151 recorded a fall, and 41 remained unchanged.