Bulls take charge as KSE-100 rallies 5,000 points
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The Pakistan Stock Exchange’s (PSX) benchmark index rallied over 5,000 points on Tuesday, a day after shedding more than 6,000 points.
The KSE-100 index surged by 5,043.51 points, or 3.14 per cent, to close at 165,634.84 points, from the previous close of 160,591.33 points.
The index recorded an intraday low of 165,763.81 points at around 9:30am. However, it then rose to an intraday high of 165,763.81 points at around 3pm, before settling at 165,634.84.
A day ago, the market shed 6,600 points in a turbulent session, as fears of supply disruptions returned after inconclusive Iran-US peace talks, triggering panic-selling at the PSX.
However, another round of Iran-US dialogue was being actively pursued as Pakistan and others have stepped up efforts to prevent the fragile process from sliding back into confrontation, diplomats said.
On the macroeconomic front, Fitch Ratings reaffirmed Pakistan’s long-term foreign-currency rating at “B-”, providing some underlying support for investor confidence.
Market sentiment had remained fragile throughout Monday’s session, after the Islamabad Talks ended with no agreement between the United States and Iran and a naval blockade of the Strait of Hormuz loomed.
US President Donald Trump’s announcement to block access to Iran’s ports, which went into effect last evening, has raised concerns about global oil supply disruptions and macroeconomic stability.
Oil prices surged back above $100 a barrel and stocks mostly fell on Monday after the US military said it had begun the blockade of Iranian ports.
