Bulls in charge as PSX opens week by gaining 1,700 points during intraday trade

The Pakistan Stock Exchange (PSX) commenced the week on an upward trajectory, surging by over 1,700 points during intraday trading. At 11 am, the KSE-100 index had climbed 2273.78 points from its previous close of 176,094.11 points. By 2:18 pm, the index's gains had receded to 1781.72 points. This positive trend unfolded as global oil prices declined on Monday, following Donald Trump's announcement of fresh negotiations with Iran.

Mettis Global explained that the buoyant sentiment at the PSX stemmed from investors responding to eased geopolitical tensions, stemming from Trump's decision to call off a planned strike on Iran. This, in turn, diminished immediate apprehensions surrounding a broader regional conflict. Awais Ashraf, director of research at AKD Securities, stated that investor confidence had been further bolstered by expectations of a swift resolution between the US and Iran.

Ashraf added that the return of inflation to single digits in July, with data due to be released, would provide an extra boost to the market by strengthening expectations of monetary easing and further enhancing investor confidence. However, the KSE-100 index concluded the initial month of the current fiscal year in the red. Topline Securities Ltd reported that the index fell 4,208 points or 2.3 percent month-on-month as heightened US-Iran tensions drove up global crude oil prices, negatively impacting investor sentiment.

The average daily traded volume during the month was 845 million shares, with an average daily traded value of Rs37.5bn.