PSX rallies over 1,000 points despite rate hike

The Pakistan Stock Exchange (PSX) continued its upward trend on Tuesday, with the benchmark KSE-100 Index

The Pakistan Stock Exchange (PSX) continued its upward trend on Tuesday, with the benchmark KSE-100 Index gaining more than 1,000 points during the session. Investor sentiment remained positive despite the State Bank of Pakistan’s decision to increase the policy rate by 50 basis points to 12%.

Hopes for progress towards ending the US-Israeli war on Iran also supported market sentiment, helping investors maintain their buying interest amid ongoing geopolitical uncertainty.

The KSE-100 Index opened higher, gaining 875.75 points, or 0.54%, to reach 163,914.21 by 9:34am. The rally continued throughout the morning, pushing the index to 164,068.67 by 12:54pm, up 1,030.21 points, or 0.63%.

During the session, the index touched an intraday high of 164,368.47 and a low of 163,545.69. Trading volume stood at 63.83 million shares, while the total turnover reached Rs4.96 billion.

Buying activity across key sectors contributed to the market’s positive performance. Cement manufacturers, commercial banks, oil and gas exploration companies, and oil marketing companies attracted investor interest, providing support to the benchmark index.

Meanwhile, international oil prices declined by around 1% as expectations of progress towards resolving the conflict involving the United States, Israel and Iran eased immediate concerns over global oil supplies.

Brent crude futures fell 0.86% to $114.81 per barrel, while US West Texas Intermediate crude dropped by the same percentage to $100.88 per barrel.

However, renewed Houthi attacks on Saudi Arabia continued to raise concerns about regional stability and potential disruptions to energy supplies. Despite these risks, improving hopes for a diplomatic breakthrough helped sustain optimism in the stock market.