PSX Surges as Geopolitical Tensions Ease

The Pakistan Stock Exchange (PSX) experienced a robust resurgence as investor confidence rebounded following statements from US President Donald Trump indicating a ceasefire agreement between Iran and Israel. The benchmark KSE-100 Index surged by over 6,500 points immediately after trading resumed on Tuesday.

The bullish trend remained consistent throughout the day, with the KSE-100 Index reaching an intraday peak of 122,725.21.

As of 2:10pm, the KSE-100 Index was recorded at 121,809.78, reflecting an increase of 5,642.31 points, or 4.86%.

Earlier in the session, trading at the PSX was temporarily halted for one hour after reaching a 5% gain, and reopened at 12:31pm.

A notice stated that due to a 5% increase in the KSE-30 index from the previous trading day’s close, a market halt was triggered as per PSX Regulations.

Widespread buying activity was evident across multiple sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and the refinery sector. Key stocks such as HUBCO, ARL, SSGC, PSO, MARI, OGDC, PPL, POL, UBL, and HBL all showed positive movement.

An analyst noted that the ceasefire announcement combined with a 3-4% decrease in international oil prices fueled the buying surge at the stock exchange.

Another analyst stated that the market sentiment indicated expectations of improved geopolitical stability.

Another expert suggested that market participants reacted favorably to the ceasefire announcement aimed at de-escalating tensions in the Middle East along with the reduction in global oil prices.

On Monday, the PSX faced significant selling pressure due to rising geopolitical tensions after a US attack, resulting in the KSE-100 Index closing with a loss of approximately 3,900 points.

At the close of Monday’s session, the KSE-100 Index concluded at 116,167.47, a reduction of 3,855.77 points, or 3.21%.

Globally, stock markets rallied, and the dollar weakened on Tuesday following President Trump’s remarks about a ceasefire agreement, which led to a sharp decline in oil prices as concerns about supply disruptions lessened.

While an Iranian official initially confirmed the ceasefire agreement, the country’s foreign minister conveyed that a cessation of hostilities would depend on Israel halting its attacks.

Oil prices decreased by over 3%, following a 9% drop on Monday when Iran conducted a limited retaliation against a US base, signaling an end to immediate action.

With the immediate threat to the crucial Strait of Hormuz shipping route seemingly diminished, U.S. crude futures further declined by 3.4% to $66.15 per barrel, marking the lowest price since June 11.

Risk assets experienced a rally, with S&P 500 futures increasing by 0.6% and Nasdaq futures rising by 0.9%.

EUROSTOXX 50 futures saw a jump of 1.3%, and FTSE futures increased by 0.4%.

The MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 1.8%, while Japan’s Nikkei advanced by 1.4%.

This update reflects intraday market activity.