PSX surges over 4,000 points in intraday trade as investor sentiment improves

KARACHI: The Pakistan Stock Exchange (PSX) staged a sharp recovery on Monday, with its benchmark KSE-100 index climbing more than 4,000 points during intraday trading.

The index rose by 4,170 points to 167,164.26, up from the previous close of 162,994.17, according to figures recorded at 11:29pm.

Mettis Global said the strong upward move reflected improved investor sentiment linked to developments surrounding heightened tensions between Iran and the United States, as well as efforts aimed at stabilising the situation in key global energy routes.

Global oil prices moved lower on Monday after US President Donald Trump said the United States would begin an effort to free ships stranded in the Strait of Hormuz. However, the absence of a US-Iran peace agreement kept oil prices supported above $100.

Monday’s rally followed four straight sessions in which the market had closed on a nervous note. Those declines were attributed to investor concerns over geopolitical tensions and rising oil prices, which had weighed on the economic outlook.

Analysts had warned that inflation in Pakistan could remain in double digits if elevated oil prices continue amid the unresolved conflict in the Middle East. They also said that higher costs and import disruptions were already putting pressure on the country’s external position.

Market rebounds after recent pressure

The latest jump in the KSE-100 index came after a period of volatility in which regional tensions and energy market uncertainty had unsettled investors. The earlier weakness in the market had been linked to fears that sustained increases in oil prices could worsen inflationary pressures and complicate the broader economic environment.

The easing in oil prices on Monday appeared to provide some relief to investors, even as the broader geopolitical situation remained unresolved. The market’s intraday performance suggested a strong response from participants to signs of possible stabilisation in a critical global shipping route.

At the same time, oil remained above $100 because a peace deal between the United States and Iran had not been reached. That meant concerns over inflation and external sector pressures had not fully disappeared, despite the day’s strong rally on the stock exchange.

The PSX’s strong intraday showing marked a notable turnaround from the caution seen in recent sessions, when geopolitical uncertainty and surging energy prices had dominated market sentiment.