Pakistan Stock Exchange (PSX) bounced back significantly on Monday as investors monitored signs of progress in talks to end the Middle East conflict with US President Donald Trump’s announcement to assist ships stranded in the Strait of Hormuz, reported 24NewsHD TV channel.
During early trading, the PSX’s benchmark KSE-100 index gained 3,685.38 points to climb to 166,679.55 points, marking a positive change of 2.21 percent. However, at the end of the day, the index managed to hold on to 954.77 points or 0.58 percent to 163,948.94 points.
Buying interest was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery.
KSE-100 Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, NBP, and UBL, traded in the green.
During the previous week, Pakistan’s equity market endured sustained pressure as persistent geopolitical uncertainty and tightening financial conditions dampened investor sentiment.
Meanwhile, shares edged higher while oil prices flatlined in Asia on Monday as investors drew comfort from signs of patchy progress in settling the Middle East conflict at the start of a week packed with earnings and key economic data.
The Japanese yen suddenly jumped in Asian trading, with the dollar falling as much as 0.9% to 155.7 yen before paring some of the losses. Traders are on alert for another intervention after Tokyo stepped into the market to shore up the currency last week.
President Donald Trump said the US would begin an effort to free up ships stranded in the Strait of Hormuz on Monday morning, though he gave no details of the plan.
A statement from the US Central Command said support would include guided-missile destroyers, over 100 land- and sea-based aircraft and 15,000 service members. A report from Axios later claimed the Navy would not necessarily escort ships through the strait.
Iran earlier said the US had responded to its 14-point proposal via Pakistan and it was reviewing the response, though Trump said it was unlikely to be acceptable.
Reporter Kavish Memon/Agencies