PSX extends rally as easing geopolitical tensions improve investor confidence

The Pakistan Stock Exchange (PSX) extended its upward momentum on Wednesday as improving sentiment over the regional situation helped the benchmark KSE-100 Index continue its recovery for a second consecutive session. 

According to the PSX website, the market opened in positive territory, with the KSE-100 Index gaining more than 800 points in early trade. The index sustained momentum throughout the session, and climbed to the day's highest level of 165,081.69, with an increase of 2,1085.01 points. 

Buying activity was seen across major sectors including cement, automobile assemblers, commercial banks, chemicals, oil and gas exploration companies and power generation. Index-heavy stocks including HUBCO, MARI, PPL, FFC and EFERT, traded in positive territory during early trade.

At close, the index settled at 164,831.42, up by 1934.74 points, or 1.19% from the previous close.

The gains followed a strong recovery in the previous session, when the benchmark index advanced 1,091.66 points, or 0.67%, to close at 162,896.68 points.

Market analysts attributed the rebound to easing concerns surrounding United States-Iran negotiations and a decline in international oil prices, which helped improve investor confidence after recent volatility.

Globally, Asian stocks extended a losing streak on Wednesday as war-driven ​inflation fears hammered bonds, while investors awaited earnings from Nvidia to see whether the world's most valuable company might be ‌able to help markets navigate higher borrowing costs.

The sell-off in global bond markets persisted as investors ramped up bets that the Federal Reserve may need to increase interest rates this year.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7% on Wednesday, down for a fourth straight day, while Japan's Nikkei dropped 1.5%, down for a fifth consecutive session.

South ​Korea's KOSPI fell 1.7%. Samsung Electronics dropped 1.4% after its union said it would go ahead with an 18-day strike from Thursday, threatening the global supply ​of semiconductors.

China's blue-chip CSI300 index was flat, while Hong Kong's Hang Seng index skidded 0.6%.

Oil prices lost about 1% on Wednesday after U.S. President Donald Trump again ‌asserted that the Iran war will end "very quickly", though investors remain wary about the outcome of peace talks as disruption to Middle Eastern supply continues.

Brent crude futures fell $1.52, or 1.4%, to $109.76 a barrel by 0831 GMT and U.S. West Texas Intermediate futures ​were down $1.36, or 1.3%, at $102.79.