PSX: Buying returns as KSE-100 up 600 points

The Pakistan Stock Exchange (PSX) saw a significant rebound on Wednesday, with the benchmark KSE-100 Index rising by nearly 600 points during early trading hours. The index opened at 180,438.76, gaining 592.08 points or 0.33%. Buying activity was seen across various sectors such as automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation.

Index-leading stocks like HUBCO, MARI, POL, PPL, HBL, MCB, MEBL, NBP, and UBL also performed well, trading in the green. On Tuesday, Pakistan indicated progress towards an arrangement between the US and Iran, which could potentially alleviate tensions affecting energy markets. Defence Minister Khawaja Asif reported to Bloomberg News that "things are shaping up again in favour of a peace arrangement or a deal."

However, PSX experienced renewed selling pressure on Tuesday due to heightened geopolitical uncertainty, surging crude oil prices and dwindling hopes for a near-term US-Iran agreement. The index closed at 179,846.68, down 1,463.60 points or 0.81%. Globally, oil and gold prices surged while regional shares saw nervous gains as geopolitical tensions escalated ahead of crucial US inflation data.

The yen remained relatively stable against the dollar after Japan and the US intervened in currency markets. US crude oil increased by 0.89% to $83.94 per barrel, and Brent rose by 0.78% to $89.60 per barrel. Spot gold also increased by 0.46% to $4,387.03 an ounce. MSCI's Asia-Pacific index excluding Japan climbed by 0.5%, while Japan's Nikkei remained flat after reopening following a holiday. The report covers real-time developments.