PSX gains over 4,300 points amid easing geopolitical tensions

Buying momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday, with the benchmark KSE-100 Index rising over 4,300 points amid expectations of a possible ceasefire in the Middle East, global market rally, and declining fuel prices. 

According to the PSX website, the market opened on a positive note, and the benchmark index surged 1960 points to 155,927.23 in the early minutes of trade. By noon, the index climbed to the day's highest level of 158,586.09. At the end of the day, the market settled at 158,313.44, up by 4347.08 points or 2.82% from the previous close. 

The rally follows a positive close in the previous session, where the KSE-100 Index settled at 153,966.36, gaining 1,225.99 points or 0.80%, although trading volumes remained subdued due to profit-taking.

Investor sentiment strengthened on reports that the United States had shared a 15-point proposal with Iran via Pakistan to end the ongoing conflict. 

"Pakistan welcomes and fully supports ongoing efforts to pursue dialogue to end the war in the Middle East, in the interest of peace and stability in the region and beyond. Subject to concurrence by the US and Iran, Pakistan stands ready and honoured to be the host to facilitate meaningful and conclusive talks for a comprehensive settlement of the ongoing conflict," Prime Minister Shehbaz Sharif said in a post on social media platform X.

Market activity remained broad-based, with gains recorded across automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation and refinery sectors. Major index contributors, including ARL, HUBCO, PSO, MARI, OGDC, POL, PPL, HBL, MCB and MEBL traded higher.

Global markets also showed upward movement, with equity futures rising and oil prices declining on signs of potential de-escalation in the conflict. Reports indicated that Washington is seeking a month-long ceasefire to facilitate negotiations on the proposed settlement plan.

S&P 500 futures increased 0.9% during Asian trading hours, while European futures rose 1.2%. Brent crude declined around 6% to approximately $98.30 per barrel, reflecting expectations of improved oil supply flows.

Equity markets in Australia, South Korea and Japan recorded gains of about 2%, while gold prices rose 1.6% as investors adjusted positions following recent trends.

Oil prices fell ​around 4% on Wednesday on the prospect of a possible ceasefire easing supply disruptions from the key Middle East ‌producing region after reports that the U.S. sent Iran a 15-point plan to end the war between them.

Brent crude futures fell $4.89, or 4.7%, to $99.60 a barrel by 0335 GMT, after declining to as low as $97.57. U.S. West Texas Intermediate (WTI) crude futures were down $3.54, or 3.8%, at $88.81 a barrel, after falling to as low as $86.72.

U.S. President Donald Trump said on Tuesday the U.S. was making ​progress in negotiating an end to the war with Iran, while a source confirmed that Washington had sent Iran a 15-point settlement proposal.