Stocks extended gains on Thursday as renewed hopes of a de-escalation in the Middle East lifted investor sentiment, even as crude oil prices rallied after a sharp decline in the previous session.
During the session, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 167,924.09, gaining 3,092.67 points or 1.88% and retreating to a low of 166,638.56, reflecting a 14.00% gain of 1,800.7. 164,831.42.
“A flurry of diplomatic moves to end the war put downward pressure on oil markets, with oil trading around 6% down,” said Ahfaz Mustafa, managing director of Ismail Iqbal Securities.
“This signals an end to hostilities and the reopening of the strait and ultimately normalization, which boosted investor sentiment,” he added.
Asian markets also advanced on Thursday, buoyed by hopes of a Middle East peace deal after Iran said it was examining a new US proposal to end the war.
Japan’s Nikkei rose more than 3.5%, while South Korea’s benchmark Kospi index rose 6.8% in morning trade, with Samsung Electronics trading 5.9% higher. Taipei rose 3.6%, Sydney rose 1.6% and Singapore rose 0.4%.
Hong Kong, Shanghai, Bangkok and Wellington also rose, although Jakarta lost 1.5%.
US President Donald Trump said on Wednesday that the talks were on the “edge” between a deal and renewed attacks, adding to cautious optimism across financial markets.
Oil was down more than 5% on Wednesday as hopes of peace prevailed, but crude prices rose on Thursday. West Texas Intermediate rose 0.5% to $98.75 a barrel, while Brent North Sea crude rose 0.4% to $105.43 a barrel.
On the domestic front, the government raised Rs 688 billion. in realized value from the market’s Treasury bill auction on Wednesday, with yields rising across all tenors.
The one-month Treasury bill cut-off rate rose 86 basis points to 12.23%, while the three-month rate rose 41 basis points to 12.4904%. The six-month yield rose 15 basis points to 12.4999% and the 12-month yield rose nine basis points to 12.59%.
The government raised Rs702 billion in face value from the auction against a target of Rs450 billion and maturity of Rs479 billion, while participation stood at Rs1.73 trillion.
In the previous session on Wednesday, the KSE-100 index gained 1,934.74 points, or 1.19%, to close at 164,831.42 against the previous session’s close of 162,896.68.
The index hit an intraday high of 165,081.7 and a low of 162,895.74, while the KSE-30 index gained 669.37 points, or 1.37%, to end at 49,356.83.
