PSX recovers as geopolitical tensions ease, investors regain confidence
PSX modestly rebounds after steep losses as geopolitical tensions ease, crude prices rise, and investors anticipate upcoming earnings season.
Pakistan Stock Exchange – (Web Desk) – The Pakistan Stock Exchange (PSX) regained stability on Friday, posting modest gains after Thursday’s sharp decline, as geopolitical concerns eased and rollover-week activity steadied early trading ahead of the upcoming earnings season.
The benchmark KSE-100 Index moved between a high of 184,453.20, up 2,115.08 points (1.16%), and a low of 182,347.47, slightly above the previous close of 182,338.12.
“Stocks recovered in early trading, supported by institutional buying in oversold shares, and investors are hopeful about a potential US-Iran de-escalation regarding the Iran deal,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He added that rising global crude oil prices and expectations from the earnings season also contributed to the bullish momentum at PSX.
Turning down the temperature, US President Donald Trump on Thursday said he hoped to avoid military action against Iran, leaving open the door to talks even as Tehran warned of retaliation and a US naval group loitered in regional waters.
As the White House struck a softer tone on Iran, crude rallied. Brent rose $2.61 (3.8%) to $71.01 a barrel, on track for its biggest monthly gain in four years, while WTI gained $2.54 (4.0%) to $65.75.
Adding to the sentiment, State Bank of Pakistan (SBP) foreign-exchange reserves increased $13 million to $16.101 billion in the week ended January 23. Total liquid reserves rose $35 million to $21.293 billion (commercial banks $5.192 billion, up $22 million).
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“Markets found some footing after a steep sell-off, rebounding modestly as geopolitical risk premiums eased across global asset classes,” said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.
“Sentiment was further supported by the final day of rollover week, allowing investors’ focus to gradually shift back to the upcoming results season,” he added.
On Thursday, the KSE-100 slumped 6,042.27 points (-3.21%) to 182,338.12, after swinging between 188,923.40 and 181,961.15.
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