The Pakistan Stock Exchange (PSX) rebounded strongly on Monday, with the benchmark KSE-100 Index gaining more than 900 points as investors returned to buying despite ongoing geopolitical tensions in the Middle East.
The market opened on a positive note, with the KSE-100 Index rising around 800 points during the opening minutes of trading. The upward momentum continued as buying activity emerged across several major sectors.
At 12:30 pm, the index was trading at 177,870.68 points, up 704.16 points, or 0.4 percent, from the previous close.
Investor interest was recorded across automobile assemblers, automobile parts and accessories, cement, commercial banks, exchange-traded funds, mutual funds, oil and gas exploration companies, oil marketing companies, power generation and refineries.
The renewed buying came despite continued concerns over regional tensions, including the US threat of an “economic D-Day” against Iran and potential disruptions to fuel supplies from the Middle East.
The latest recovery follows a difficult week for the stock market.
The KSE-100 Index started the previous week at 180,104.61 points and closed at 177,166.52 points, losing 2,938.09 points, or 1.6 percent.
Heightened political and geopolitical tensions, uncertainty surrounding the Strait of Hormuz and rising international oil prices weighed heavily on investor sentiment during the week.
According to Arif Habib Limited, the market is likely to remain sensitive to geopolitical developments, while the ongoing corporate earnings season could provide some support.
The positive performance at the PSX contrasted with weakness across several Asian markets as investors awaited details of additional US sanctions on Iran.
Japan’s Nikkei declined 0.5 percent after falling nearly 4 percent last week, while South Korea’s benchmark dropped 2.8 percent and Taiwan’s index fell 0.5 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.3 percent, while China’s CSI300 index lost 1.2 percent.
Hong Kong-listed Alibaba shares plunged 9.5 percent following the launch of a $10.2 billion share offering, while Samsung Electronics fell more than 8 percent after its shareholder-return plan disappointed investors.
Oil prices also declined during Monday’s trading session as investors took profits ahead of expected developments regarding Iran.
Brent crude futures fell $1.23, or 1.3 percent, to $93.16 per barrel by 0329 GMT, while US West Texas Intermediate crude declined $1.36, or 1.6 percent, to $85.70.
Meanwhile, gold prices increased another 0.8 percent to around $4,653 per ounce. Gold has gained approximately 15 percent so far this month, putting it on track for its strongest monthly advance on record if the gains continue through August.
The PSX’s latest rebound reflects renewed investor buying, although market sentiment is expected to remain closely tied to geopolitical developments, oil prices and corporate earnings in the coming sessions.
