Buying sweeps banking, cement, energy and power stocks amid optimism over lower global crude prices
KARACHI:
The Pakistan Stock Exchange (PSX) kicked off the trading week on a bullish note on Monday, with the benchmark KSE-100 index surging nearly 2,750 points shortly after the opening bell as investors cheered a sharp decline in global oil prices and renewed optimism over easing geopolitical tensions in the Middle East.
The benchmark index soared to 178,836.99 points by 9:34am, gaining 2,742.88 points, or 1.56%, from the previous close of 176,094.11, reflecting broad-based buying across the market.
Although the index later gave up part of its early gains, it remained firmly in positive territory. By 1:35pm, the KSE-100 was trading at 177,948.83, up 1,854.72 points, or 1.05%.
During the session, it touched an intraday high of 178,985.94 and a low of 178,045.68. Market activity remained healthy, with 177.11 million shares traded, generating a value of Rs13.77billion.
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Investor confidence strengthened after international oil prices plunged by more than $4 per barrel on Monday as US President Donald Trump held off on launching a fresh attack on Iran while seeking a swift agreement to curb Tehran’s nuclear ambitions and reopen the Strait of Hormuz.
The easing in crude oil prices helped calm concerns over regional tensions and their potential impact on global energy supplies, encouraging investors to accumulate stocks.
Buying was concentrated in key sectors, including commercial banks, oil marketing companies, cement, oil and gas exploration companies and power generation, driving the market’s strong start to the week. Trading is underway.
