Lead

The Pakistan Stock Exchange's (PSX) benchmark index soared 2,000 points during early trade on Tuesday, with the KSE-100 index up 2,075.58 points from the previous close of 175,927.73 points by 10:24am. The surge came as global oil prices softened, with markets weighing reports of mediation efforts between the US and Iran against an exchange of fresh attacks and threats of a naval blockade of Saudi Arabia by Yemen's Houthis.

Coverage comparison

Dawn reported the index climb in its Tuesday business coverage, noting the rise during early trading. The report attributed the market's upward movement to the retreat in oil prices from a one-month high, as well as renewed diplomatic efforts between Washington and Tehran. The same report noted that oil prices had retreated from recent highs, with Brent crude futures easing 78 cents, or 0.9 per cent, to $88.44 per barrel by 0415 GMT, and US West Texas Intermediate crude down 73 cents, or 0.9 per cent, to $82.50 per barrel. The more active contract for September delivery slipped 41 cents, or 0.5 per cent, to $82.07 a barrel.

The report also referenced the previous session's performance, noting that 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 to close the session in the green with a meagre gain.

Key claims

  • The KSE-100 index gained 2,075.58 points during early trade on Tuesday, reaching a level not specified in the report, by 10:24am.
  • Global oil prices softened, with Brent crude falling to $88.44 per barrel and US WTI dropping to $82.50 per barrel.
  • Awais Ashraf, director of research at 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.
  • Ashraf also said investor sentiment was 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.
  • Topline Securities Ltd said the index closed marginally higher on Monday, gaining 124.95 points or 0.07 per cent 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.