PSX: Buying returns, KSE-100 up 2,000 points

The Pakistan Stock Exchange (PSX) saw a strong rebound on Tuesday, with the KSE-100 Index soaring nearly 2,000 points within the first 35 minutes of trading. The benchmark index opened at 169,970.23, up 1,999.58 points, or 1.19%, indicating significant buying across sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration, OMCs, power generation, and refineries. Index-heavy stocks like ARL, HUBCO, MARI, OGDC, PPL, POL, PSO, MCB, MEBL, HBL, and NBP all traded positively.

The surge was fueled by substantial Eurobond inflows, pushing the State Bank of Pakistan's (SBP) foreign exchange reserves to a record high of $21.4 billion. In the previous week, Pakistan managed to raise approximately $3 billion through a dual-tranche Eurobond issuance, marking the country's largest-ever global bond transaction in a single offering.

However, the market's mood was initially dampened on Monday as concerns over the escalating US-Iran conflict, attacks on shipping in the Strait of Hormuz, and high international oil prices above $100 per barrel unsettled investors. These worries centered on potential fuel inflation, increased import costs, and the bank's monetary policy outlook.

By the end of the trading session, the KSE-100 Index had fallen by 2,541.20 points, closing at 167,970.66. Globally, Asian markets faced headwinds due to Middle East tensions, calls for a slowdown in AI development, and rising oil prices, as well as higher bond yields ahead of important central bank meetings in the US and Japan.