PSX rallies as Saudi Arabia pledges $3bn, KSE-100 crosses 170,000

Buying rally continued at the Pakistan Stock Exchange (PSX) as investors rejoiced after the Kingdom of Saudi Arabia committed $3 billion in additional deposits to Pakistan, pushing the benchmark KSE-100 Index above the 170, 000 level during the opening minutes of trading on Wednesday. At 11: 44am, the benchmark index was hovering at 170, 385. 17, up by 4, 750. 33 points or 2. 87%. “The market is firing on all cylinders as a perfect storm of economic and diplomatic wins hits the floor, ” said Behtari Capital. “With the Saudi deposit securing our reserves and Brent at $94 easing inflation, the macro-environment has shifted from ‘crisis mode’ to ‘growth mode’. If the round two talks are officially confirmed for tomorrow, we are looking at a clear shot toward 170, 000, ” it added. Across-the-board buying interest was observed, including key sectors, i. e. cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, PRL, OGDC, POL, PPL, MARI, HBL, MCB, MEBL and UBL, traded in the green. In a key development, Finance Muhammad Aurangzeb informed that the Kingdom of Saudi Arabia has committed $3 billion in additional deposits, with disbursement expected in the coming week. He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period. On Tuesday, PSX extended its sharp recovery in a powerful relief-driven rally as easing geopolitical tensions and renewed hopes of US–Iran diplomatic engagement triggered aggressive buying across the board. The benchmark KSE-100 Index closed at 165, 634. 85 points, gaining 5, 043. 51 points or 3. 14%. Internationally, Asian stocks tracked Wall Street ​higher on Wednesday as hopes for a resumption of U. S. -Iran peace talks pushed oil ‌prices lower, while the dollar steadied after seven days of losses. President Donald Trump said talks with Iran could resume in Pakistan over the next two days, after the collapse of weekend negotiations prompted Washington to impose a blockade on ​Iranian ports. Pakistani and Iranian officials also said negotiations could restart. Signs that diplomatic engagement would ​continue helped calm markets, pushing benchmark oil prices firmly below $100 a barrel. Brent ⁠crude futures fell 0. 7% to $94. 13 a barrel, having slumped almost 5% overnight. Stock investors cheered, with MSCI’s ​broadest index of Asia-Pacific shares outside Japan gaining 1. 5% to the highest level in six weeks. Japan’s ​Nikkei also climbed 1. 2% to 58, 561 points, closing in on the record high of 59, 332. 43 from late February. Chinese blue-chips rose 0. 5% and Hong Kong’s Hang Seng index gained 1. 2%. This is an intra-day update

Read full story on Business Recorder