PSX Rebounds, Gains Over 2,500 Points After Two-Day Losing Streak

The Pakistan Stock Exchange’s (PSX) benchmark index snapped a two-day losing streak on Wednesday, gaining more than 2,500 points during early trade. The KSE-100 index initially rose 3,133 points at 10:06am from its previous close of 173,518.81 points. By 10:14am, it was still up 2,664.88 points.

Mettis Global, a financial portal, indicated that the KSE-100 index was rebounding from the previous session’s steep losses as investors engaged in value buying after heavy selloffs. Investor sentiment turned positive after United States President Donald Trump replaced a proposed 20 per cent toll on Strait of Hormuz traffic with investment commitments from GCC countries, according to Awais Ashraf, director of research at AKD Securities.

Additionally, lower-than-expected US inflation has eased concerns over further Federal Reserve rate hikes, improving the outlook for capital flows into frontier markets and reducing pressure on the Pakistani rupee. On Tuesday, the stock market experienced extreme selling pressure, pulling the benchmark KSE-100 index below the 174,000 level. Equity investors lost Rs706 billion in a single session amid persistent panic stemming from geopolitical developments that fuelled a surge in oil prices.

Internationally, Asian markets were higher on Wednesday after a surprise slowdown in US inflation scaled back market expectations for interest rate hikes. Oil extended its gains as Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on US infrastructure in the region. Brent futures climbed 99 cents, or 1.2 per cent, to $85.72 a barrel at 0400 GMT. West Texas Intermediate futures gained 64 cents, or 0.8pc, to $79.98 a barrel.