PSX extends gains on Middle East peace hopes
Stocks extended gains on Thursday as renewed hopes of Middle East de-escalation lifted investor sentiment, even as crude prices edged higher after a sharp fall in the previous session.
During the session, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 167,924.09, gaining 3,092.67 points, or 1.88%, and retreated to a low of 166,638.56, reflecting a gain of 1,807.14 points, or 1.10%, from the previous close of 164,831.42.
“A flurry of diplomatic moves to end the war created downward pressure in the oil markets, and oil traded about 6% down,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“This is signalling an end to hostilities and the reopening of the strait and eventually normalisation, which buoyed investors’ sentiment,” he added.
Asian markets also advanced on Thursday, supported by hopes of a Middle East peace deal after Iran said it was examining a new US proposal to end the war.
Japan’s Nikkei jumped more than 3.5%, while South Korea’s benchmark Kospi index surged 6.8% in morning trade, with Samsung Electronics trading 5.9% higher. Taipei rose 3.6%, Sydney gained 1.6% and Singapore was up 0.4%.
Hong Kong, Shanghai, Bangkok and Wellington also moved higher, though Jakarta lost 1.5%.
US President Donald Trump said on Wednesday that talks were on the “borderline” between a deal and renewed attacks, adding to cautious optimism across financial markets.
Oil had fallen more than 5% on Wednesday as peace hopes gained traction, but crude prices edged higher on Thursday. West Texas Intermediate was up 0.5% at $98.75 a barrel, while Brent North Sea crude rose 0.4% to $105.43 a barrel.
On the domestic front, the government raised Rs688 billion in realised value from the auction of market treasury bills on Wednesday, with yields increasing across all tenors.
The one-month T-bill cut-off yield rose 86 basis points to 12.23%, while the three-month yield increased 41 basis points to 12.4904%. The six-month yield rose 15 basis points to 12.4999%, and the 12-month yield increased nine basis points to 12.59%.
The government raised Rs702 billion in face value from the auction against a target of Rs450 billion and maturity of Rs479 billion, while participation stood at Rs1.73 trillion.
In the previous session on Wednesday, the KSE-100 Index surged 1,934.74 points, or 1.19%, to close at 164,831.42 against the previous session’s close of 162,896.68.
The index touched an intraday high of 165,081.7 and a low of 162,895.74, while the KSE-30 Index gained 669.37 points, or 1.37%, to finish at 49,356.83.
