PSX surges over 6% as falling oil prices lift investor sentiment – SUCH TV

The Pakistan Stock Exchange (PSX) rebounded sharply on Tuesday, with the benchmark index jumping more than 6% after sentiment in global markets improved following US President Donald Trump’s prediction that the ongoing war in the Middle East could soon de-escalate.

During the session, the benchmark KSE-100 Index traded between a high of 157,648.77 (up 11,168.63 points, or 7.62%) and a low of 155,294.65 (up 8,814.51 points, or 6.02%) versus the previous close of 146,480.14.

During the previous session on Monday, the index shed 11,015.96 points, marking the second-largest single-day drop in the index’s history.

The index indicated at 155,783.89 (up 9,303.75 points, or 6.35%) when trading was temporarily suspended.

“Market is rebounding due to lower oil prices and improving sentiment in regional markets,” Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, told Geo.tv.

Topline CEO Mohammad Sohail told Thenews.pk that a sharp decline in global oil prices has prompted investors to aggressively buy local stocks.

Trading at the PSX was temporarily suspended after the benchmark KSE-30 Index declined by more than 5% from the previous day’s close, triggering a market-wide circuit breaker.

The exchange’s notice noted that outstanding orders were cancelled automatically and set out the re-opening schedule (Market Halt Time 09:22am; Pre-Open 10:22am; Open 10:27am).

Oil prices fell on Tuesday after hitting an over three-year high in the prior session, after Trump’s prediction eased concerns about prolonged disruptions to global oil supplies.

Brent futures LCOc1 fell $4.17, or 4.2%, to $94.79 a barrel at 0345 GMT, while US West Texas Intermediate (WTI) crude CLc1 was down $3.81, or 4%, to $90.96 a barrel. Both the contracts fell as much as 11% earlier before paring some losses.

Oil surged past $100 a barrel on Monday to hit their highest since mid-2022, as supply cuts by Saudi Arabia and other producers during the expanding US-Israeli war with Iran stoked fears of major disruptions to global supplies.

Prices later retreated after Russian President Vladimir Putin held a call with Trump and shared proposals aimed at a quick settlement to the Iran war, according to a Kremlin aide, easing concerns about a prolonged supply disruption.

Trump said on Monday in a CBS News interview that he thinks the war against Iran “is very complete” and that Washington was “very far ahead” of his initial four- to five-week estimated timeframe.

Asian stock markets also rose sharply in early trade, including in South Korea and Japan.

South Korea’s benchmark Kospi rebounded more than 5%, and the Nikkei 225 in Tokyo jumped more than 3% before falling back slightly.