Late selling erodes early gains at PSX, KSE-100 closes up over 200 points
- Benchmark index settles at 176,133.56
The Pakistan Stock Exchange surged nearly 2,000 points on Tuesday, driven by strong buying momentum amid reports of US-Iran mediation efforts easing geopolitical tensions and lowering oil prices.
- US-Iran mediation efforts and their market impact.
- Key sectors and stocks boosting Pakistan's KSE-100.
- Middle East geopolitical tensions and global oil prices.
The Pakistan Stock Exchange (PSX) saw a highly volatile session on Tuesday, with the benchmark KSE-100 Index shedding most of its gains before managing to close marginally higher.
The market opened on a strong note, extending its initial rally as aggressive buying pushed the index to an intraday high of 178,370.45.
Positive sentiment dominated the first half of trading, with the benchmark hovering above the 178,000 level for much of the morning. However, the bullish momentum faded sharply after midday as investors resorted to profit-taking.
Selling pressure intensified throughout the afternoon, dragging the index below the 177,000 mark and erasing almost all of the day’s gains. The benchmark eventually touched an intraday low of 176,062.69.
At close, the benchmark index settled at 176,133.56, up by 205.83 points or 0.12%.
On Monday, the PSX ended marginally higher after staging a remarkable intraday recovery from an early plunge, as aggressive value hunting in blue-chip stocks offset panic selling triggered by escalating geopolitical tensions in the Middle East and rising international oil prices.
The benchmark KSE-100 Index gained 124.95 points, or 0.07%, to close at 175,927.74 points.
Internationally, Asian stocks gained on Tuesday as mediation efforts in the Middle East pushed oil prices away from a one-month high, while investors braced for a slate of corporate earnings that will test an under-pressure AI trade.
Yemen’s Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia, a move that could further disrupt energy supplies, amid attacks between the US and Iran, even as efforts were being made to revive a fragile ceasefire.
Brent crude futures eased 0.38% to $88.88 per barrel in early trading on Tuesday as investors latched on to hopes of a resolution. Brent hit its highest since mid-June at $91.42 a barrel in the previous session.
A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire, intended to pave the way for a lasting agreement to end the war that began on 7 October with US-Israeli attacks on Iran.
In stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.25% higher after dropping for three straight sessions. Japan’s gained over 1% while South Korea’s KOSPI rose nearly 3%.
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