PSX gains over 2,200 points as US-Iran ceasefire extension reports boost sentiment

The Pakistan Stock Exchange (PSX) extended its rally in the first trading session after Eid on Friday, as investor sentiment strengthened following reports that the United States and Iran had reached a potential deal to extend a ceasefire. 

According to the PSX website, the market opened in positive territory, with the benchmark KSE-100 Index gaining more than 800 points in early trading. Buying momentum strengthened throughout the session, pushing the index to 173,962.81 by closing, up 2,237.52 points, or 1.3%, from the previous close.

Buying activity was witnessed across major sectors, including automobile assemblers, cement, oil and gas exploration companies, oil marketing companies and power generation firms.

The gains followed a strong rally before the Eid holidays, when investor sentiment improved on expectations surrounding ongoing United States-Iran negotiations, easing international oil prices and broad-based buying activity. 

On Monday, the benchmark KSE-100 Index surged by 3,881.05 points, or 2.31%, to close at 171,725.29 points.

World stocks rose to record highs on Friday and oil futures eyed their steepest weekly drop in nearly two months as traders ​waited for details on a potential deal to reopen the Strait of Hormuz and extend the U.S.-Iran ceasefire.

Sources told Reuters ‌that the U.S. and Iran have reached an agreement to extend their ceasefire and lift restrictions on shipping, though U.S. President Donald Trump has yet to approve it and Iranian state media said it had not been finalised.

Moves in the Asia session were modest, with S&P 500 futures steady after the index notched another record closing high overnight. ​Brent crude futures fell about $1 a barrel to $92.69 for a weekly drop of more than 10%.

The dollar headed for a small fall on ​the week, tracking a retreat in U.S. yields. Analysts aren't sure, however, whether that fall in yields can extend, ⁠since a U.S.-Iran deal is unlikely to quickly unwind the inflation impulse unleashed by high fuel prices.

MSCI's index of world stocks edged up to a record high, with AI-euphoria lifting chipmaker shares around the world and pushing benchmarks in Tokyo and Seoul up around 2% on Friday and ​toward weekly rises.

A revenue outlook upgrade at computer-maker Dell sent shares soaring 39% in after-hours trade and boosted rival Lenovo in Hong Kong - a stock ​up nearly 60% this week on the back of strong full-year results.