PSX Rally: KSE-100 Surges Over 2,000 Points as Investor Confidence Improves
Lower global oil prices and optimism over corporate earnings fuel strong buying at the Pakistan Stock Exchange.
Investors monitor trading as the KSE-100 Index surges more than 2,000 points in early session.
KARACHI: The PSX Rally gathered pace on Tuesday as the Pakistan Stock Exchange’s benchmark KSE-100 Index climbed more than 2,000 points during early trading, supported by easing global oil prices and improved investor sentiment.
By 10:24am, the KSE-100 Index had gained 2,075.58 points, reaching 178,003.31, compared with the previous close of 175,927.73.
The market advanced after global crude oil prices declined amid reports of renewed mediation efforts between the United States and Iran. Investors also monitored fresh military exchanges between the two countries and threats by Yemen’s Houthis to impose a naval blockade on Saudi Arabia.
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Brent crude futures fell 78 cents, or 0.9 per cent, to $88.44 per barrel. US West Texas Intermediate (WTI) crude declined 73 cents, or 0.9 per cent, to $82.50 per barrel, while the more actively traded September contract slipped 41 cents, or 0.5 per cent, to $82.07 per barrel.
Awais Ashraf, Director of Research at AKD Securities, said the market extended Monday’s late-session recovery as oil prices retreated from a one-month high following renewed diplomatic efforts between Washington and Tehran.
He added that expectations of strong corporate earnings also boosted investor confidence. Oil and gas exploration companies, cement manufacturers, refineries and textile firms are expected to report stronger-than-usual financial results during the current earnings season.
The rally followed a volatile trading session on Monday. The market remained under pressure for most of the day before late buying in heavyweight banking and refinery stocks helped erase losses.
According to Topline Securities, the KSE-100 Index ended Monday’s session with a modest gain of 124.95 points, or 0.07 per cent, to close at 175,927.74. The brokerage said strong late-session buying offset sharp intraday declines, although geopolitical tensions and uncertainty in global energy markets continued to influence investor sentiment.
