PSX gains 249 points on US-Iran optimism
“The Pakistan Stock Exchange (PSX) overcame an afternoon bout of profit-taking on Tuesday to finish higher, as renewed buying helped the market recover its losses and close in positive territory. The se…”
The sentiment was also bolstered by optimism over a possible breakthrough in the US-Iran conflict, although profit-taking later in the session trimmed the market’s advance. The benchmark KSE-100 Index gained 248.92 points, or 0.15%, to settle at 171,402.08.
It hit an intraday high of 171,680.74 and a low of 170,866.94. The session began with a solid rally, but the momentum faded as investors moved to book profits, briefly pushing the index below its previous close.
The decline proved temporary, with buyers returning later in the session to lift the benchmark back into the green. Oil and gas exploration, cement and power stocks led the recovery, while weakness in commercial banks and fertiliser shares kept the advance modest.
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The easing of crude supply concerns also influenced the sentiment, with oil prices falling to a two-week low as Iran signalled it could reopen the Strait of Hormuz within seven days and Saudi Arabia prepared to resume exports from its Red Sea port of Yanbu. Also Read:PSX rises 269 points as oil market steadies.
According to Ahmed Sheraz at KASB KTrade, the market remained mildly positive as easing geopolitical concerns and lower international oil prices supported sentiment. Oil & gas stocks witnessed recovery as Brent crude slipped below $100, trading around $98, easing concerns over inflationary pressures.
Sentiment was further supported by reports that Iran has conveyed to the US administration that it could reopen the Strait of Hormuz within seven days if Washington lifts the blockade. The development raised hopes of improved oil flows and a reduction in the geopolitical risk premium, supporting recovery in the oil segment, Sheraz added.
He predicted the market to remain cautiously positive, with Brent prices, US-Iran developments and Strait of Hormuz traffic remaining key drivers.
A sustained decline in oil prices could provide relief to Pakistan’s external account and support market sentiment, while any renewed geopolitical escalation could bring volatility back to the PSX.Cumulatively, trading volume decreased to 641.8 million shares from Monday’s volume of 692.8 million. In the ready market, shares of 494 companies were traded.
Of these, 226 stocks closed high, 221 fell and 47 remained unchanged. Tasdeeq Information led the volume with trading in 133.2 million shares, losing Rs0.09 to close at Rs4.91.
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