Buying momentum continues at PSX, KSE-100 up 2,400 points amid peace hopes
- Benchmark index was hovering at 178,466.2
Pakistan's stock market surged due to renewed hopes for Middle East peace after President Trump held off on attacking Iran, coupled with falling crude oil prices.
- Pakistan Stock Exchange's significant gains.
- Impact of US-Iran peace prospects on investor sentiment.
- Falling international crude oil prices and global market reactions.
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 gaining nearly 2,400 points during the opening minutes of trading on Monday.
At 9:40am, the benchmark index was hovering at 178,466.25, up by 2,372.14 points or 1.35%.
Buying was observed in key sectors, including commercial banks, cement, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HBL, MCB, MEBL, NBP, OGDC, PPL, POL, PSO and HUBCO, traded in the green.
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