Positive momentum returned at the Pakistan Stock Exchange (PSX) on Tuesday, amid reports of a potential diplomatic breakthrough, with mediating nations, including Pakistan, working to convene high-level talks in Islamabad as early as this week to ease tensions in the Middle East.
At 12pm, the benchmark KSE-100 Index was hovering at 154,999.94, up by 2,259.57 points or 1.48%.
“Global markets are exhaling after Donald Trump suggested a diplomatic breakthrough with Iran, deferring strikes for five days,” said Behtari Capital on Monday.
On the local front, investors are finally reacting to the $427 million current account surplus, the highest in a year, and the $10 billion ADB roadmap. “Long-term fundamentals are finally outweighing short-term border noise,” it added.
Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including DGKC, HBL, MCB, FFC, MARI, OGDC, POL, PPL and PSO traded in the green.
The development comes as Pakistan is positioning itself as the lead mediator trying to broker an end to the US’s and Israel’s war against Iran, as reported by the Financial Times on Monday.
During the previous week, PSX remained under sustained pressure as it extended its losing streak to eight consecutive weeks, reflecting persistent investor caution amid escalating geopolitical tensions in the Middle East and a mixed domestic macroeconomic backdrop.
The benchmark KSE-100 Index declined by 1,126 points on a week-on-week basis, or 0.73%, to close at 152,740 points.
Globally, stocks were on tenterhooks and oil prices rose in choppy trade on Tuesday as US President Donald Trump’s postponement of the bombing of Iran’s power grid proved no panacea for investors worried about the ramifications of the Middle East war.
US Treasury yields pushed higher, and the dollar regained lost ground, in a retracement of the relief rally that swept markets overnight after Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours, citing “productive” talks with Tehran.
Much uncertainty remained as the world continues to grapple with an energy shock, while Iran denied that it had engaged in negotiations with the US.
Asian shares were up on Tuesday in a catch-up rally to global counterparts. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, while Tokyo’s Nikkei advanced 0.8%. Hong Kong’s Hang Seng Index added 1.4%.
But US futures turned lower after Wall Street ended higher in the overnight cash session. Nasdaq futures were down 0.6%, while S&P 500 futures lost 0.5%.
EUROSTOXX 50 futures similarly slid 0.9% and FTSE futures edged 0.8% lower.
This is an intra-day update
Positive momentum returned at the Pakistan Stock Exchange (PSX) on Tuesday, amid reports of a potential diplomatic breakthrough, with mediating nations, including Pakistan, working to convene high-level talks in Islamabad as early as this week to ease tensions in the Middle East.
At 12pm, the benchmark KSE-100 Index was hovering at 154,999.94, up by 2,259.57 points or 1.48%.
“Global markets are exhaling after Donald Trump suggested a diplomatic breakthrough with Iran, deferring strikes for five days,” said Behtari Capital on Monday.
On the local front, investors are finally reacting to the $427 million current account surplus, the highest in a year, and the $10 billion ADB roadmap. “Long-term fundamentals are finally outweighing short-term border noise,” it added.
Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including DGKC, HBL, MCB, FFC, MARI, OGDC, POL, PPL and PSO traded in the green.
The development comes as Pakistan is positioning itself as the lead mediator trying to broker an end to the US’s and Israel’s war against Iran, as reported by the Financial Times on Monday.
During the previous week, PSX remained under sustained pressure as it extended its losing streak to eight consecutive weeks, reflecting persistent investor caution amid escalating geopolitical tensions in the Middle East and a mixed domestic macroeconomic backdrop.
The benchmark KSE-100 Index declined by 1,126 points on a week-on-week basis, or 0.73%, to close at 152,740 points.
Globally, stocks were on tenterhooks and oil prices rose in choppy trade on Tuesday as US President Donald Trump’s postponement of the bombing of Iran’s power grid proved no panacea for investors worried about the ramifications of the Middle East war.
US Treasury yields pushed higher, and the dollar regained lost ground, in a retracement of the relief rally that swept markets overnight after Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours, citing “productive” talks with Tehran.
Much uncertainty remained as the world continues to grapple with an energy shock, while Iran denied that it had engaged in negotiations with the US.
Asian shares were up on Tuesday in a catch-up rally to global counterparts. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, while Tokyo’s Nikkei advanced 0.8%. Hong Kong’s Hang Seng Index added 1.4%.
But US futures turned lower after Wall Street ended higher in the overnight cash session. Nasdaq futures were down 0.6%, while S&P 500 futures lost 0.5%.
EUROSTOXX 50 futures similarly slid 0.9% and FTSE futures edged 0.8% lower.
This is an intra-day update
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