PSX gains over 1,700 points as oil prices ease, sentiment improves

KARACHI – Pakistan Stock Exchange (PSX) on Tuesday witnessed a strong bullish trend, with the benchmark index climbing more than 1,700 points amid falling global oil prices and improving domestic political sentiment. The KSE-100 Index surged by 1,756.89 points, or 1.04%, to close at 170,710.59 points, compared with the previous session’s closing of 168,953.70 points. The market analysts attributed the rally to easing international crude oil prices following a de-escalation in tensions between Iran and Israel. Investor confidence also strengthened as geopolitical concerns in the Middle East showed signs of cooling. According to Ahfaz Mustafa, Chief Executive Officer of Ismail Iqbal Securities, the decline in oil prices played a key role in boosting market sentiment after recent developments reduced fears of further escalation in the region. He further noted that expectations regarding the federal budget also contributed to positive sentiment in the market. Reports suggesting that the budget is being finalised and is likely to be presented on June 12 helped ease political uncertainty among investors. On the global front, oil prices retreated on Tuesday, reversing most of the previous session’s gains after Iran and Israel indicated a halt in direct attacks following calls for restraint from US President Donald Trump. However, both sides warned that hostilities could resume if conditions deteriorate. Equity markets in Asia also staged a partial recovery after a sharp decline in the previous session, supported by renewed investor interest in technology stocks and easing geopolitical tensions in the Middle East. Meanwhile, global markets found additional support from a rebound on Wall Street, where investors moved to buy undervalued shares after a recent sell-off driven by concerns over interest rate policy and stretched valuations in the technology sector. KSE-100 drops as rising oil prices spark investor concerns