ISLAMABAD: Pakistani stocks gained by more than 2,000 points at the close of the trading session on Monday, with analysts attributing the rally to easing Middle East tensions after the United States (US) canceled planned strikes against Iran that led to a subsequent decline in global oil prices.
The benchmark KSE-100 Index rose to 2,105.91 points or 1.2 percent to close at 178,200.02 points, as per data from the Pakistan Stock Exchange (PSX). This was an increase from the PSX’s previous close of 176,094.11 points on Friday.
Bulls took charge of the market after US President Donald Trump canceled planned strikes against Iran on Sunday. Trump said he called off the attack after appeals from Gulf allies Qatar, Saudi Arabia and the UAE.
This eased concerns over potential supply disruptions, reducing global oil prices. Brent crude futures fell to Rs23,000 ($82.89) a barrel after earlier hitting a three-week low. US West Texas Intermediate crude declined to Rs21,905 ($78.90) a barrel.
“Stocks staged sharp recovery amid US cancels Iran attacks for nuclear deal and speculations in the earnings season,” Arif Habib Commodities Chief Executive Officer Ahsan Mehanti told Arab News.
“Surging global equities, decline in global oil prices and upbeat data on CPI inflation at 9.2pc YoY in July played the catalyst role in bullish activity at PSX (Pakistan Stock Exchange).”
Pakistani firm Topline Securities said the stock market staged a strong come back over investor optimism surrounding the possibility of renewed diplomatic talks between the US and Iran.
“Easing geopolitical concerns led to a sharp decline in international oil prices, boosting investor sentiment and triggering broad-based buying across key sectors,” the brokerage firm said in its daily market review.
The report added that the rally reflected a “renewed risk appetite” as investors welcomed signs of easing regional tensions and lower energy prices.
Topline Securities pointed out that Fauji Fertilizer Company (FFC), Meezan Bank (MEBL), Lucky Cement (LUCK), Pakistan Petroleum Limited (PPL), and Engro Holdings (ENGROH) collectively added 699 points to the benchmark index on Monday.
The report said the total traded volume rose to 785 million shares, while traded value stood at Rs33 billion ($145 million), with Topline Securities Brokerage Limited (TSBL) leading the volume chart.
Pakistani investors have remained cautious in recent months due to heightened regional tensions and volatility in energy prices triggered by the US and Israel’s war on Iran.
