PSX rebounds after Monday slump, KSE-100 jumps over 1,900 points

Pakistan Stock Exchange rebounded on Tuesday after a sharp decline in the previous session, with the benchmark KSE-100 Index gaining more than 1,900 points at the closing. 

Widespread buying was observed in key sectors, including oil marketing companies, automobile assemblers, cement, commercial banks, oil and gas exploration companies, power generation, and refineries. Key index-heavy stocks, including ARL, HUBCO, MARI, POL, PSO, SNGPL, SSGC, and WAFI, traded higher.

The recovery follows a sharp decline on Monday, when the KSE-100 Index fell by 4,864.54 points or 3.21 percent to close at 146,842.97, marking a fourth consecutive Monday of losses amid geopolitical concerns and cautious investor activity.

Global markets remained under pressure as oil prices moved toward a record monthly increase, while Asian equities were set for their steepest monthly decline since 2022 due to concerns over inflation and slowing growth linked to the Middle East conflict.

Bond markets were also under strain, heading for their largest decline in months as expectations of tighter global interest rates strengthened, while the dollar recorded its biggest gain in eight months.

Investor sentiment has remained sensitive to developments in the conflict involving the United States, Israel, and Iran, with markets reacting to ongoing uncertainty.

US futures recovered from early losses, with Nasdaq futures rising 0.34 percent and S&P 500 futures up 0.4 percent. In Europe, EUROSTOXX 50 futures gained 0.15 percent, while DAX futures increased 0.26 percent.

In Asia, MSCI’s broad index of Asia-Pacific shares outside Japan declined 0.55 percent and was on track for a monthly fall exceeding 12 percent. Japan’s Nikkei dropped 0.93 percent and was set for a 12.6 percent monthly loss, while South Korea’s Kospi was headed for a decline of more than 17 percent, the steepest since 2008.

Oil prices reversed course in Asian trading on ‌Tuesday, paring earlier gains, following a report that U.S. President Donald Trump told aides he is willing to end the Iran war without reopening the Strait of Hormuz.

Brent crude futures for May were down $1.22, or 1.08%, to $111.56 per barrel at 0210 GMT after rising 2% earlier in the session. The May contract expires ​on Tuesday and the more active June contract was at $105.76.

U.S. West Texas Intermediate futures for May fell 98 cents, or 0.95%, ​to $101.90 a barrel after hitting their highest point since March 9 in early trading.

Analysts said the fall ⁠in prices is a temporary reaction to the idea of the war’s end, but any meaningful change in prices would not materialise until ​flows through the Strait of Hormuz are completely reinstated.

Trump told aides he is willing to end the military campaign against Iran even if the ​Strait of Hormuz remains largely closed and leave its reopening for a later date, The Wall Street Journal reported on Monday, citing administration officials.

On Monday, Trump warned that the U.S. would “obliterate” Iran’s energy plants and oil wells if Tehran did not reopen the waterway.