PSX rally continues as KSE-100 crosses 180,000 in intraday trade

Buying rally continued at the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100 Index gaining more than 3,400 points in intraday trade as investors responded positively to easing regional tensions following a preliminary US-Iran deal.

According to the PSX website, the market opened on a positive note, with the KSE-100 Index climbing to an intraday high of 180,499.96, up 3,460 points from the previous close.

By 2:30 pm, the index was trading at 180,143.20, reflecting an increase of 3,103.38 points, or 1.75%.

Buying was witnessed across key sectors, including automobile assemblers, chemicals, commercial banks, oil and gas exploration companies, oil marketing companies and refineries.

The rally followed Monday’s session, when the PSX recorded a sharp gain as investors reacted to federal budget measures, SBP’s policy rate, and reports of a preliminary peace understanding between the United States and Iran.

The KSE-100 Index had surged 4,639.93 points, or 2.69%, on Monday to close at 177,039.83 points.

The easing of fears over global oil supply disruptions improved investor sentiment and supported broad-based risk appetite across the market.

Globally, Asian stocks made cautious gains on ​Tuesday after a rally in the previous session on news of a U.S.-Iran peace deal, while investors assessed a ‌widely expected Bank of Japan rate increase to a 31-year high.

The Nikkei 225 jumped 0.6%, briefly crossing above the 70,000 mark to set an all-time peak after the Japanese central bank voted 7-1 to hike its benchmark policy rate to 1%, levels last seen in 1995. Against the dollar, the yen was flat at 160.31 ​yen.

Oil prices ​slid to fresh three-month lows on Tuesday as markets weighed prospects for a resumption of supplies through ‌the Strait of Hormuz alongside weaker physical demand and scant details on a preliminary deal to end the Iran war.

Brent crude futures were down $1.44, or 1.7%, at $81.73 a barrel, the lowest since March 10, at 0906 GMT.

Spot gold was up 0.8% at $4,341.39 per ounce at ​0851 GMT. Prices have recovered about 8% from a near six-month low hit ​last week. U.S. gold futures delivery added 0.3% to $4,363.00.

S&P 500 e-mini futures were trading down 0.1% after fluctuating between gains and losses, ⁠while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4%, with Korean shares rising 2%. Stocks in Hong Kong weighed ​on the benchmark after weaker-than-expected retail sales and fixed-asset investment data from China.

Markets settled into a more measured tone on Gulf developments as the initial ​excitement over the preliminary agreement between Washington and Tehran began to fade.