PSX surges nearly 3% as Trump rules out immediate Iran strikes

Massive buying was observed at the Pakistan Stock Exchange (PSX) after US President Donald Trump said US military action against Iran ​is not necessary “at this point”, with the benchmark KSE-100 gaining nearly 3% during the trading session on Tuesday.

At 3:15 pm, the benchmark index was hovering at 179,057.25, up 5,170.57 points or 2.97%.

“Today’s rally reflects a clear repricing of risk on the PSX,” Saad Hanif of Ismail Iqbal Securities told Business Recorder.

“Easing geopolitical tensions have lowered the risk premium on Pakistani equities, while softer oil prices bode well for the import bill, current account and inflation outlook. If sustained, this could also open room for monetary easing, and investors are positioning early,” he added.

Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including MARI, OGDC, PPL, PSO, HUBCO, HBL, MCB, MEBL and UBL, traded in the green.

The PSX recorded its strongest weekly rally in nearly six months, with the benchmark KSE-100 Index surging 7,477.44 points, or 4.5% week-on-week, to close at 173,886.69 points.