Lead

Pakistan's stock market experienced a volatile trading session on Tuesday, with the benchmark KSE-100 index briefly gaining nearly 1,200 points before closing marginally higher. The swings came as global oil prices softened early on reports of US-Iran mediation efforts, but later rose amid continued hostilities in the Gulf.

Coverage comparison

The Pakistan Stock Exchange's (PSX) benchmark index opened in the green on Tuesday, soaring by 2,442.72 points to reach an intraday high of 178,370.45 at 10:09am, according to reports from Dawn. The market then dipped sharply from 12pm onwards, dropping below the 177,000-point level, before closing at 176,133.56 points – up by 205.83 points (0.12 per cent) from the previous close.

Another report from Dawn described the trading day differently, noting that the KSE-100 index made "marginal gains" as investor sentiment remained cautious. That report highlighted that the market dipped sharply from 12pm onwards, dropping below the 177,000-point level, and attributed the subdued close to "lingering geopolitical tensions and persistent uncertainty surrounding global energy markets".

While one report emphasized the index's intraday gain of nearly 1,200 points, the other focused on the erosion of those gains and the cautious tone among investors. Both reports noted the same early rally and subsequent decline, but framed the day's outcome with different emphasis.

Key claims

  • The KSE-100 index gained nearly 1,200 points during intraday trade on Tuesday, with an intraday high of 178,370.45 points reached at 10:09am.
  • The market dipped sharply from 12pm onwards, dropping below the 177,000-point level, as reported by Dawn.
  • Global oil prices softened on Tuesday, with Brent crude futures easing 78 cents, or 0.9pc, to $88.44 per barrel, and US West Texas Intermediate crude down 73 cents, or 0.9pc, to $82.50 per barrel.
  • Awais Ashraf, director of research at AKD Securities, commented on the market's performance, noting that "oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran".
  • Refinery stocks bore the brunt of the selling pressure amid market speculation that the long-awaited refinery policy could face further delays, according to Topline Securities Ltd.
  • Oil prices rose by nearly 2pc later in the day, following continued hostilities in the Gulf and threats of a naval blockade of Saudi Arabia by Yemen's Houthis.
  • The KSE-100 index closed at 176,133.56 points, up 205.83 points (0.12 per cent) from the previous close.

Market context

Topline Securities Ltd said the index closed marginally higher, gaining 124.95 points or 0.07pc to settle at 175,927.74, as strong late-session buying in heavyweight banking and refinery stocks erased sharp intraday losses. The market remained highly volatile throughout the session, reflecting cautious investor sentiment amid lingering geopolitical tensions and uncertainty in global energy markets.

Awais Ashraf of AKD Securities said the market extended the previous session's late recovery as "oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran". He added that "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 stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.

Outlook

Market participants continued to assess geopolitical developments and their potential implications for global oil prices, inflation, and foreign investment flows, according to Topline Securities. The brokerage noted that the "strong start proved short-lived, as participants opted to lock in gains at elevated levels, triggering broad-based profit-taking during the latter half of the session".

As of 1:15pm PKT, global oil prices had fallen by more than 1pc, but the majority of the early market gains eroded as oil prices rose by nearly 2pc later in the day. Brent crude futures rose $1.62, or 1.8pc, to $90.84 a barrel by 4:52pm PKT.