Bulls snap losing streak as PSX gains 2,500 points during intraday trade

The Pakistan Stock Exchange’s (PSX) benchmark index snapped a two-day losing streak on Wednesday, gaining more than 2,500 points during early trade.

The KSE-100 index initially rose 3,133 points at 10:06am from the previous close of 173,518.81 points. By 10:14am, it came down a little but was still up 2,664.88 points.

Mettis Global, a web-based financial portal, said the KSE-100 index was rebounding from the previous session’s steep losses as investors engaged in value buying after heavy selloffs.

Awais Ashraf, director of research at AKD Securities, said that investor sentiment had “turned positive” after United States President Donald Trump replaced the proposed 20 per cent toll on Strait of Hormuz traffic with investment commitments from GCC countries.

“Additionally, lower-than-expected US inflation has eased concerns over further Federal Reserve rate hikes, improving the outlook for capital flows into frontier markets while reducing pressure on the Pakistani rupee,” he said.

Meanwhile, oil extended its gains on Wednesday as Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on US infrastructure in the region.

Brent futures climbed 99 cents, or 1.2 per cent, to $85.72 a barrel at 0400 GMT. West Texas Intermediate futures gained 64 cents, or 0.8pc, to $79.98 a barrel.

On Tuesday, the stock market came under extreme selling pressure, pulling the benchmark KSE-100 index below the 174,000 level.

Equity investors lost a staggering Rs706 billion in a single session amid persistent panic stemming from geopolitical developments fuelling a surge in oil prices, following Trump’s announcement of imposing a 20pc charge on ships navigating the Strait of Hormuz. However, he later backtracked, saying the strait was open to all shipping traffic except that of Iran. ...