The Pakistan Stock Exchange (PSX) rebounded sharply on Wednesday, climbing to an intraday high of 179,463.43 amid improved investor confidence over prospects of a US-Iran peace agreement.
The benchmark KSE-100 Index touched a high of 179,463.43, up 2,380.21 points during the midday trading from the previous day’s closing of 177,083.22, and a low of 178,631.9, still up 1,548.68 points.
“The market today seems to be taking a sigh of relief after hopes for a peace deal are revived as regional countries rush to open the Strait of Hormuz,” said AAH Soomro, an independent investment and economic analyst.
According to Soomro, the short-term outlook is contingent upon resumed traffic through Hormuz and the end of the war, leading to the US military’s departure from the region after a long-term peace deal.
“Events such as falling oil prices, long-term bond yields, S&P credit upgrade and results season would keep medium-term outlook positive and may push index beyond 200k before year end,” he said.
Global oil prices extended declines on Wednesday after steep falls in the previous two trading sessions, as investors waited to see if efforts to end the Iran war and restore traffic through the blockaded Strait of Hormuz were making progress.
Brent crude futures dropped 92 cents, or about 1.2%, to $78.44 a barrel. They have tumbled more than 12% for the week thus far.
US West Texas Intermediate futures lost $1.07, or 1.4%, to stand at $74.70 a barrel and are down more than 11% this week.
The development emerged a day after Qatar said mediators were making progress in efforts to end the US-Iran war, driving oil prices lower, although Tehran has denied US President Donald Trump’s assertion that talks are underway.
Brent closed more than 5% lower on Tuesday below $80 a barrel for the first time since July 13.
