The Pakistan Stock Exchange’s (PSX) benchmark index opened the week on a strong note, gaining more than 4,000 points during early trade.
The KSE-100 index had gained 4,501.33 points to reach 175,522.53 points by 9:50am from the previous close of 171,021.20 points.
Mettis Global, a web-based financial portal, attributed the rally to “easing geopolitical tensions and a sharp decline in global oil prices”, saying it improved investor sentiment.
The development comes as Iran and the United States held their fire on Monday, handing Gulf shipping and the oil industry a respite from missile strikes as Donald Trump’s UN envoy said the president was “giving talks some space”.
Oil prices also tumbled on Monday as investors breathed cautious sighs of relief at the pause in combat. The price of a barrel of international benchmark North Sea Brent crude shed more than seven per cent at one point early on Monday to briefly drop back below $90, while US counterpart West Texas Intermediate was down four per cent at $85.45 a barrel.
Last week, the stock market had remained under pressure as the benchmark KSE-100 index lost 2.7 per cent amid escalating geopolitical tensions in the Middle East, rising international oil prices and cautious investor sentiment.
The KSE-100 index shed 4,782 points to close at 171,021.20 as concerns over the widening US-Iran conflict overshadowed positive domestic developments, including an upgrade in Pakistan’s sovereign credit rating.
Additional input from AFP
