Buying continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 4,000 points during the trading session on Wednesday.
At 12:20pm, the benchmark index was hovering at 153,988.00, an increase of 3,971.84 points or 2.65%.
Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including DGKC, HBL, MCB, MEBL, MARI, OGDC, POL, PPL, PSO, SNGPL and SSGC, traded in the green.
Analysts attributed the buying spree to a decline in global oil prices and a rebound in regional markets.
“The market is buying the rumour of a secret text-based backchannel between the US and Iran,” said Behtari Capital.
“Despite official denials, the hope of a ceasefire has put a lid on Brent crude at $102 per barrel, sparking this massive relief rally,” it added.
On Tuesday, PSX witnessed a mixed yet resilient trading session, with the benchmark index regaining the 150,000 psychological level on the back of improved investor sentiment, although overall activity remained cautious amid persistent geopolitical concerns and recent market volatility.
The KSE-100 Index closed at 150,016.16 points, posting a gain of 837.50 points or 0.56%.
Internationally, Asian shares rallied on Wednesday as oil prices paused their gains, with markets turning to the US Federal Reserve meeting to see how policymakers will balance growth and inflation risks amid ongoing geopolitical tensions in the Middle East.
Israel intensified its offensive by killing Iran’s security chief, while Iran renewed its strikes on oil facilities in the United Arab Emirates (UAE). A senior Iranian official said the new supreme leader rejected de-escalation offers conveyed by intermediaries, signalling no quick end to a war that has unleashed a global oil shock.
Oil prices took a breather on Wednesday from recent gains, though the Strait of Hormuz remained largely shut. Brent crude futures dropped 1% to $102.28 a barrel, while U.S. West Texas Intermediate crude fell 1.6%.
That is proving to be a comfort for equity investors, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.2%. Japan’s Nikkei rallied 2%.
Chinese blue-chips inched up 0.1% while Hong Kong’s Hang Seng index rose 0.3%.
This is an intra-day update
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