PSX surges over 2,000 points in early trade as oil prices ease

KARACHI: The Pakistan Stock Exchange’s benchmark KSE-100 index jumped by more than 2,000 points in early trading on Tuesday, extending a late recovery seen in the previous session as international oil prices moved lower.

By 10:24am, the KSE-100 index had added 2,075.58 points to the previous close of 175,927.73.

Oil prices soften

The rise in equities came as global crude prices eased on Tuesday, with investors assessing reports of mediation efforts between the United States and Iran alongside fresh exchanges of attacks and threats by Yemen’s Houthis to impose a naval blockade on Saudi Arabia.

Reuters data said Brent crude futures were down 78 cents, or 0.9pc, at $88.44 per barrel by 0415 GMT. US West Texas Intermediate crude fell 73 cents, or 0.9pc, to $82.50 per barrel, while the more active September contract slipped 41 cents, or 0.5pc, to $82.07 a barrel.

Brokerage view on market sentiment

Awais Ashraf, director of research at AKD Securities, said the market was building on Monday’s late-session rebound as lower oil prices improved sentiment.

He added that investors were also taking encouragement from the current earnings season. "Investor sentiment is also being supported by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery and textile companies expected to post stronger-than-usual results."

The market had started the week on a weak note on Monday, with trading marked by sharp swings. However, late buying interest helped the benchmark close slightly higher by the end of the session.

Topline Securities Ltd said the index ended Monday with a gain of 124.95 points, or 0.07pc, at 175,927.74, as strong buying late in the day in major banking and refinery shares reversed steep intraday losses. The brokerage said the session remained highly volatile, reflecting cautious investor sentiment amid continuing geopolitical tensions and uncertainty in global energy markets.