PSX rebounds as hopes of Middle East deal lift sentiment

Web Desk | 1 month ago

Pakistan’s stock market staged a strong recovery on Tuesday, with the benchmark KSE-100 Index posting sharp gains as investor sentiment improved on expectations of a possible easing in Middle East tensions.

The index climbed as high as 149,684.93 points, gaining 2,841.96 points or 1.94%, while the session low of 147,743.67 still reflected a rise of 900.70 points compared to the previous close of 146,842.97. Despite the upward movement, market participants remained cautious, citing uncertainty surrounding geopolitical developments.

According to Ahfaz Mustafa, the market opened on optimism linked to a potential deal to end the conflict in the Middle East. However, he noted that trading activity remained subdued, with thin volumes indicating limited investor participation and a lack of clear direction.

PSX Surges Over 1,500 Points Amid Falling Oil Prices

Global cues also influenced sentiment. Oil prices retreated after earlier gains as reports suggested Donald Trump may consider ending the military campaign against Iran even if the Strait of Hormuz remains partially closed. This eased concerns about prolonged disruption to global energy supplies.

In international markets, Brent crude for May delivery fell by over 1%, while US West Texas Intermediate also declined after hitting recent highs. The pullback in oil prices provided some relief to equity investors concerned about inflationary pressures.

Domestically, analysts warned that rising energy costs could push inflation higher in the coming months. A report by Optimus Capital Management projected consumer inflation could enter double digits in April, driven largely by a sharp increase in fuel prices and higher electricity tariffs.

The market rebound follows a steep decline in the previous session, when the KSE-100 Index lost over 3%. Analysts say volatility is likely to persist as investors closely monitor geopolitical developments and economic indicators.