Buying momentum continues at PSX, KSE-100 gains 1.2%

Buying momentum continued at the Pakistan Stock Exchange (PSX) amid renewed hopes of peace after US President Donald Trump held off on a fresh attack on Iran, with the benchmark KSE-100 Index settling with a gain of 1.2% on Monday.

Trading opened on a highly positive note, with the index quickly surging to its intraday high of 178,985.94 within the first few minutes of the session.

However, the early rally triggered profit-taking, causing the benchmark to erase a large portion of its gains. The market then stabilised and moved sideways through the late morning, hovering in the 178,200–178,500 range.

Selling pressure intensified after midday, dragging the index steadily lower to an intraday low of 177,759.88. The decline, however, was short-lived, and strong late-session buying helped the benchmark recover most of the lost ground.

At close, the benchmark index settled at 178,200.02, up by 2,105.91 points or 1.20%.

During the previous week, PSX rebounded strongly, snapping a three-week losing streak as easing geopolitical tensions following the cessation of hostilities between the United States and Iran significantly improved investor sentiment.

The decline in international Brent crude oil prices by around 9% week-on-week to below $90 per barrel further boosted risk appetite, helping the benchmark KSE-100 Index recover more than 5,000 points over the week.

According to the weekly market review, the benchmark KSE-100 Index gained 5,072.93 points, or around 3% week-on-week, to close at 176,094.13 points.

Internationally, oil prices skidded, and stocks ​wobbled on Monday as hopes of peace in the Middle East grew, while the ‌yen jumped suddenly after the US and Japan confirmed joint intervention to prop up the frail currency.

Brent crude futures sank more than 6% to $82.41 after US President Donald Trump said talks with Iran will happen on Monday.

He had earlier called ​off an imminent attack on Iran to reach a deal to reopen the Strait of ​Hormuz and resolve the impasse over Tehran’s nuclear capabilities.

S&P 500 futures rose 0.4% while ⁠Nasdaq futures gained 0.6%. But Japan’s Nikkei dipped 1%, and South Korea’s KOSPI slid 3.6% after ​a turbulent July in which it slumped 22%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down ​1% in early trading.

This is an intraday update