PSX extends rally as KSE-100 gains nearly 1,200 points

The Pakistan Stock Exchange (PSX) extended its gains on Thursday, with the benchmark KSE-100 Index rising nearly 1,200 points as investor sentiment remained positive following easing geopolitical tensions and the previous session’s strong rally.

According to the PSX website, the market opened on a weak note, with the benchmark index falling to an intraday low of 171,541.04 during early trading. However, the decline was short-lived as fresh buying emerged across the board, pushing the market back into positive territory.

During intraday trade, the KSE-100 Index touched a high of 173,274.54 points before settling at 172,894.27 at the close of trading, up 1,189.52 points or 0.69% from the previous session.

Investor interest remained strong in automobile assemblers, commercial banks, oil exploration companies, oil marketing companies, power generation firms and refinery stocks.

The gains followed Wednesday’s strong rally, when the KSE-100 Index surged 6,962.29 points or 4.23% to close at 171,704.76 points amid easing tensions between the United States and Iran and declining global oil prices, which improved investor sentiment.

Globally, stocks rose on Thursday while oil prices sank on optimism over a US-Iran peace deal, even as the ​fate of the critical Strait of Hormuz appeared unresolved.

MSCI's All-Country World Index rose 0.23% to approach record highs. Europe's STOXX ‌600 was little changed, having jumped 2.2% on Wednesday, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.82% to a fresh all-time high.

Japan's Nikkei crossed 62,000 for the first time as trading resumed after an extended holiday weekend.

U.S. ​President Donald Trump on Wednesday predicted a swift end to the war with Iran as Tehran considered a U.S. peace proposal that sources said would formally end the ​conflict while leaving unresolved key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

Oil prices extended losses on ​Thursday, sliding by more than 2% to take the Brent crude benchmark below $100 a ‌barrel on renewed hopes for a U.S.-Iran peace deal that could bring a gradual reopening of the Strait of Hormuz.

Brent crude futures fell $2.50, or 2.5%, to $98.77 a barrel by 1107 GMT. U.S. West Texas Intermediate dropped $2.47, or 2.6%, to $92.61.