PSX recovers from early fall to end session in the green

The Pakistan Stock Exchange (PSX) staged a slight recovery during the second half of the volatile trading session on Tuesday, with the benchmark index gaining 465 points after early losses, as investors weighed geopolitical tensions and pressure on the country’s foreign exchange reserves.

According to the PSX website, the market opened on a negative note, with the benchmark index dropping more than 2,000 points during the early minutes of trade to a low of 149,140.57. The index later reversed course, gaining momentum through the second half of the session and reaching an intraday high of 152,013.05. 

At close, the KSE-100 Index settled at 151,673.45, up 465.64 points, or 0.31%.

Tuesday’s volatile session was driven by a combination of external and domestic factors, including uncertainty ahead of a US deadline on Iran and concerns over a $3.5 billion outflow from Pakistan linked to repayments to the United Arab Emirates.

As per media reports, the pressure on reserves has prompted the government to explore external financing options, including potential support from China and Saudi Arabia, as it seeks to manage a widening financing gap.

This follows a volatile session on Monday, when the market saw sharp intraday swings before closing higher. The KSE-100 Index had settled at 151,207.82 points, gaining 809.10 points, or 0.54%.

Globally, markets remained cautious as tensions in the Middle East continued to weigh on investor sentiment. The conflict has disrupted oil flows through the Strait of Hormuz, a key transit route, contributing to elevated oil prices and inflation concerns.

Brent crude was up 0.4% at $110.19 per barrel, while US West Texas Intermediate rose 0.8% to $113.31.

Asian markets showed mixed trends, with MSCI’s Asia-Pacific index excluding Japan rising 0.4%, while Japan’s Nikkei slipped 0.2%. US stock futures were down 0.55%, while European futures pointed to a higher open following recent holidays.