KSE-100 Index Jumps 4,654 Points as PSX Roars Back
The KSE-100 index surged by 4,654 points in morning trade on Tuesday as investors returned to the Pakistan Stock Exchange after a long weekend, lifted by falling oil prices and easing fears of a United States strike on Iran.
The benchmark index climbed to 178,540.36 points by 12:04pm, a gain of 4,653.68 points, or 2.68 per cent, from the previous close. The market had stayed shut on Monday for Iqbal Day, and buyers came back in force when trading resumed on Tuesday.
The index opened firmly and reached 176,739.00 points by 9:34am, up 2,852.32 points, or 1.64 per cent. Buying then gathered pace through the morning, and the index touched an intraday high of 178,606.21 points. Its low for the session stood at 176,273.72 points.
Trading volume reached 227.49 million shares by midday, with the traded value at Rs21.35 billion, a sign that the rally had broad support rather than resting on a few heavy stocks.
KSE-100 index surges on easing oil prices
The rally followed a sharp fall in world oil prices. Brent crude futures dropped 70 cents, or 0.75 per cent, to $91.88 a barrel by 0246 GMT, while United States West Texas Intermediate fell 78 cents, or 0.90 per cent, to $86.07 a barrel. Both benchmarks had lost about one per cent earlier in the session.
The fall came after United States President Donald Trump played down the need for military action against Iran at this stage. That eased worries about prolonged supply disruption in the Middle East, which had pushed oil prices up and rattled markets across the region.
Brent crude had already fallen almost five per cent as Mr Trump signalled restraint, and Tuesday’s further slide kept the pressure off importers. Pakistan buys nearly all of its oil from abroad, so cheaper crude cuts the import bill and eases pressure on the rupee.
Oil slide calms nerves after Iran fears
Investors had spent days watching the standoff between Washington and Tehran, and the prospect of a wider conflict had kept buyers on the sidelines. Mr Trump’s remarks that war was effectively over, and that no new strikes were needed, changed the mood.
The relief spread beyond oil. Pakistan’s exports to the United States rose in the first quarter, and a new Saudi-Pakistan private equity fund aims to lift trade and investment, two developments that gave investors more reason to buy.
The market also drew support from the rupee’s recent steadiness and from hopes that lower oil prices will feed through to cheaper fuel and power. SNGPL has warned that unpaid power sector bills have reached Rs169.27 billion, so any relief on energy costs matters for companies as well as households.
What the rally means for investors
A gain of more than 4,600 points in a single morning is rare, even by the standards of a market that has set record after record this year. It shows how quickly sentiment can turn when a global risk fades.
For small investors, the lesson is the same as ever. The index can rise fast on good news, and it can fall just as fast when the news turns. Gold, which many savers treat as a safe store of value, now costs Rs432,336 per tola in Pakistan, a reminder that savers spread risk across assets rather than chasing one rally.
Brokers said the morning’s volume showed fresh money entering the market, not only existing holders trading among themselves. That matters because a rally built on new buying tends to last longer than one built on short covering.
What happens next
The market will stay open into the afternoon, and the closing level will show whether buyers held their nerve through the session. Traders will also watch oil prices and any fresh word from Washington or Tehran.
If crude keeps falling, the relief could carry into the rest of the week. If tensions flare again, the gains could fade as quickly as they came. The Express Tribune reported the morning surge.
Frequently asked questions
How much did the KSE-100 index gain on Tuesday?
It rose 4,653.68 points, or 2.68 per cent, to 178,540.36 points by 12:04pm, after touching an intraday high of 178,606.21 points.
Why did the market rise so sharply?
Falling world oil prices and easing fears of a United States strike on Iran lifted sentiment, after President Donald Trump played down the need for military action.
Why was the market shut on Monday?
The Pakistan Stock Exchange stayed closed on Monday, November 9, for Iqbal Day, which marks the birth anniversary of poet-philosopher Allama Muhammad Iqbal.
How much did oil prices fall?
Brent crude fell 70 cents to $91.88 a barrel, while United States West Texas Intermediate fell 78 cents to $86.07 a barrel by 0246 GMT on Tuesday.
How many shares changed hands?
Trading volume reached 227.49 million shares by midday, with the traded value at Rs21.35 billion.
