Bulls return with 6,000-point-plus bang at Pakistan Stock Exchange
Trading was halted for one hour after 5% rule was implied
The Pakistan Stock Exchange (PSX) bounced back strongly on Tuesday as news of a ceasefire between Iran and Israel and a sharp drop in oil prices restored investors’ confidence triggering widespread buying, reported 24NewsHDTV channel.
At the end of the day, the PSX’s benchmark KSE-100 Index surged by 6,079.16 points or 4.97% to reach 122,246.63 points.
Earlier in the day, the massive rise in value of the share prices lifted the index by nearly 6,000 points or 5.06 percent, after which the trading came to halt as 5% lock was applied suspending business for one hour.
The bourse resumed trading after a one-hour break at 12:31 pm.
Of the 477 companies traded today, share prices of 407 companies went up, of 35 companies were down while 35 remained unchanged.
Economic experts said the ceasefire and the subsequent plunge in oil prices have triggered today’s rally. The falling oil prices and the ending of the threat of a prolonged conflict in the Middle East has calmed the markets. They are giving investors the confidence to re-enter the market with confidence, they added.
Global shares rallied and the dollar extended declines after US President Donald Trump said Iran and Israel had agreed to a ceasefire, sending oil prices into a deep dive as concerns over supply disruptions ebbed.
Writing on his Truth Social site, Trump implied a ceasefire would go into effect in 12 hours, after which the war would be considered "ended".
Earlier on Monday, the Pakistan Stock Exchange (PSX) had witnessed a sharp downturn on the first trading day of the week, with the index losing over 3,800 points and falling below four key psychological levels in a single session.
Following the recent US strike on Iran, heightened geopolitical tensions in the region triggered panic among investors, prompting a major sell-off at the bourse. The index shed the 120,000, 119,000, 118,000, and 117,000-point levels before closing at 116,167 points, down by 3,855 points.
Throughout the day, bearish sentiment dominated the market as investors opted to offload their holdings amid growing concerns over regional stability and domestic economic uncertainty.
A total of 467 companies’ shares were traded, with a trading volume of 585.9 million shares and a total value of Rs22.91 billion.
Reporter: Kawish Memon