PSX continues recovery as KSE-100 index gains 2,600 points in early trade
Why This Matters
The Pakistan Stock Exchange's recovery is significant as it indicates a shift in investor sentiment following the easing of tensions between the US and Iran, which had previously led to a sharp decline in the market. The rebound also suggests that investors are regaining confidence in the market, driven by stability in oil prices and the possibility of renewed negotiations between the two nations. This development has important implications for the country's economy, particularly in the context of its reliance on oil imports.
The Pakistan Stock Exchange’s (PSX) benchmark index continued to recover on Thursday as it surged by around 2,600 points during early trade. The KSE-100 index gained 2,604.49 points (1.49 per cent) by 11:04am to stand at 177,890.27 points from the previous close of 175,285.78. Awais Ashraf, director of research at AKD Securities, noted that the market continued Wednesday’s rebound after US President Donald Trump’s recent remarks. Trump said on Wednesday that Tehran was eager to reach a deal with Washington. “They want to settle so badly. They don’t like what we’re doing, and they do want to settle. We’ll find out whether or not we settle with them, or we just finish it off.” According to Ashraf, the US president’s remarks indicated that he wanted “to bring Iran back to the negotiation table to end the conflict”. “Stability in oil prices for the past two days is also adding to investor confidence,” he observed as oil prices turned lower on Thursday. After initially rising for a fourth straight session, Brent crude futures slipped 24 cents, or 0.28pc, to $84.95 a barrel as of 9:35am PKT, while US West Texas Intermediate futures fell 15 cents, or 0.19pc, to $79.45 a barrel. The sustained positive momentum at the stock market comes after KSE-100 witnessed value-hunting by equity investors on Wednesday, partially recovering losses from Tuesday’s bloodbath. On Tuesday, the index had lost 6,408.23 points due to panic-driven selling amid renewed fighting between the US and Iran, which heightened concerns about energy flows through the Strait of Hormuz. Additional input from Reuters
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