PSX: buying returns, KSE-100 gains nearly 1% on hopes of easing Middle East tensions

It was a tale of two halves at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index recovering sharply from early-session losses to close near the day’s high as reports of Strait of Hormuz talks lifted market sentiment on Friday. The benchmark index opened under pressure and fell to an intra-day low of 166, 141. 17 during the opening minutes of trading, reflecting initial selling pressure. However, buying interest emerged as the session progressed, allowing the index to gradually recover and move into the positive territory. The market gained further momentum in the second half of the session, with the KSE-100 surging past 170, 000 and hitting an intra-day high of 170, 764. 79. At close, the benchmark index settled at 170, 511. 85, up 1, 646. 81 points or 0. 98%. “The KSE-100 Index opened on a negative note as Houthi assaults on Saudi energy facilities pushed crude oil prices higher, weighing on investor sentiment. However, during the latter part of the trading session, reports that the six-member Gulf bloc is considering a meeting with Iranian officials next week to discuss the future of the Strait of Hormuz triggered a decline in crude oil prices, ” brokerage house Topline Securities said in its post-market report. Top positive contribution to the index came from MEBL, FFC, LUCK, PPL, OGDC and EFERT, as they cumulatively contributed 1, 032 points to the index, it added. According to the Financial Times, Gulf foreign ministers plan to meet their Iranian counterpart in a push by Oman and Iran to secure buy-in for a temporary deal to manage shipping through the Strait of Hormuz. The gathering is scheduled to be held on Monday in the Omani coastal city of Salalah, the report said, citing two people briefed on the matter. On Thursday, PSX suffered a major pullback as renewed US-Iran attacks and surging international crude prices triggered aggressive selling across the market, with benchmark indices falling sharply amid heightened concerns over inflation, the external account and broader macroeconomic stability. The KSE-100 Index plunged 3, 078. 56 points, or 1. 79%, to settle at 168, 865. 04 points. Internationally, global bond yields ​spiked to new highs and share markets slumped on Friday as soaring oil prices inflamed inflation risks, sending investors scrambling to price in ‌more policy tightening from central banks across the globe. Brent crude climbed to a four-month high of $109. 97 a barrel on Friday after a 6% overnight jump, capping a weekly gain of nearly 13%. Oil flows remained restricted through the Strait of Hormuz as the US and Iran traded attacks, while Houthis seized control of Yemen’s port of Mocha, threatening Saudi oil exports in the Red ​Sea. That was a wake-up call for markets that are finally starting to price in the risk of a protracted war. Comments from President Donald Trump that the war could ​last beyond the November midterm elections haven’t helped, with bond yields surging globally on heightened inflation fears. Higher bond yields raised the discount rates used for corporate valuations, leaving Asian stocks in deep losses. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1. 8% while Japan’s ​Nikkei tumbled 2. 8%. Chinese blue-chips fell 1. 2%, and Hong Kong’s Hang Seng dropped 1. 5%. Nasdaq futures fell ​0. 2%, and S&P 500 futures were little changed. Meanwhile, the Pakistani rupee extended its marginal gains, appreciating 0. 01%, against the US dollar in the interbank market on Friday. The local unit closed the day at 277. 32, a gain of Re0. 03 against the greenback. Volume on the all-share index increased to 687. 47 million from 628. 67 million recorded in the previous close. The value of shares rose to Rs33. 70 billion from Rs27. 02 billion in the previous session. Cnergyico PK was the volume leader with 104. 27 million shares, followed by Pak Refinery with 66. 01 million shares, and Media Times Ltd with 35. 45 million shares. Shares of 500 companies were traded on Friday, of which 248 registered an increase, 210 recorded a fall, and 42 remained unchanged.

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