PSX: Buying returns as KSE-100 gains over 400 points
- Benchmark index settles at 180,311.21
The Pakistan Stock Exchange rebounded significantly, gaining nearly 600 points, fueled by renewed buying interest and hopes for a US-Iran peace arrangement.
- Pakistan Stock Exchange's significant rebound and sector performance.
- Potential US-Iran peace arrangement and energy market impact.
- Global market reactions to geopolitical tensions and US inflation data.
Buying interest returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling with a gain of over 400 points on Wednesday.
The index started on a positive note and climbed to an intraday high of 180,901.26 points before coming under selling pressure around midday. It fell to the intraday low of 179,920.10 in the early afternoon but recovered later as buying interest returned.
Overall, the market showed mixed trading with strong intraday swings, but the index managed to end in positive territory.
At close, the KSE-100 Index settled at 180,311.21, up by 464.53 points or 0.26%.
The United States and Iran agreed to extend a ceasefire ahead of the expiration of the 60-day deadline under the Islamabad Memorandum of Understanding, Anadolu Agency reported on Wednesday, citing government sources in Pakistan.
On Tuesday, the PSX came under renewed selling pressure amid heightened geopolitical uncertainty, rising crude oil prices and diminishing prospects of a near-term US-Iran agreement. The benchmark index closed at 179,846.68 points, shedding 1,463.60 points or 0.81%.
Internationally, oil and gold prices climbed while regional shares edged nervously higher on Wednesday as geopolitical tensions ratcheted up ahead of key US inflation data.
The yen was mostly flat against the dollar, having unwound much of its gains following rare intervention in currency markets by Japan and the United States.
The US and Yemen’s Iran-aligned Houthis reported separate attacks on shipping, while Asia was rattled by an early morning missile launch by North Korea. Markets remained focused on US consumer price index data later in the session for signals of timing for a potential Federal Reserve rate hike.
US crude rose 0.89% to $83.94 a barrel, and Brent advanced to $89.60 per barrel, up 0.78% on the day. Spot gold gained 0.46% to $4,387.03 an ounce.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%, while Japan’s benchmark Nikkei share gauge traded flat as the market reopened after a holiday.
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