Bulls return to PSX as regional tensions ease, oil prices fall

The Pakistan Stock Exchange (PSX) switched back to buying mode on Wednesday, as an easing regional situation after the Iran-US agreement and falling oil prices helped improve investor sentiment, lifting the benchmark KSE-100 Index by more than 1,800 points during intraday trade.

According to the PSX website, the market opened on a positive note, with the KSE-100 rising by more than 1,000 points in the early minutes of trading.

The index maintained its upward momentum during the session and touched an intraday high of 179,540.31, up by 1,847 points.

At 2:14 pm, the benchmark index was trading at 179,123.02, higher by 1430.10 points, or 0.8%.

Buying was seen across key sectors, including apparel, automobile assemblers, cement, commercial banks, fertiliser, exchange-traded funds, oil and gas exploration companies, oil marketing companies and power generation.

The recovery came after the PSX remained under pressure on Tuesday, when investors stayed cautious amid uncertainty over regional geopolitical developments. The KSE-100 Index closed at 177,692.92 points, down 778.95 points, or 0.44%.

Global stocks also staged a tentative recovery on Wednesday from a rout in technology shares on the back of caution ‌ over overstretched AI valuations, while crude oil prices fell towards four-month lows and the dollar marched up to one-year highs. 

Technology stocks, which were hit hard on Tuesday, edged up ahead of earnings from chipmaker Micron, whose products help power the AI boom. But sentiment was fragile and investors opted for safer havens such as the dollar.

Wild swings in Asian equities overnight that saw South Korea's Kospi turn Tuesday's 10% drop into a 3.5% gain on Wednesday did ​not translate into high volatility in Europe.

Oil prices fell more than 1% on ​Wednesday, extending this week's losses to hit fresh four-month lows on signs that more oil ‌tankers are set to move out of the Strait of Hormuz.

Brent crude futures were down $1.37, or 1.8%, at $75.71 a barrel by 0805 GMT. U.S. West Texas Intermediate slipped by $1.08, or 1.5%, to $72.13.