PSX gains 1,646 points after rebound from oil-led sell-off

KSE-100 Index closes at 170,511 points, following an extremely volatile session

KARACHI:

The Pakistan Stock Exchange (PSX) staged a sharp late recovery on Friday after plunging to an intraday low of 166,641, down nearly 2,700 points at one stage, as panic selling followed an overnight jump in Brent crude of almost 7% toward $109 a barrel.

KSE-100 Index closed at 170,511 points, up 1,646 points or 0.98% DoD, following an extremely volatile session. The index plunged to an intraday low of 166,641, down nearly 2,700 points at one stage, as panic selling intensified following the overnight surge in oil prices. Brent crude had jumped nearly 7% toward USD 109/bbl, weighing heavily on market sentiment, according to Ahmed Sheraz of KASB KTrade.

However, sentiment reversed sharply as Brent retreated to around USD 104/bbl amid reports of possible negotiations between Gulf states and Iran over the Strait of Hormuz, alongside Pakistan’s diplomatic engagement with Iranian Foreign Minister Abbas Araghchi. The easing in oil prices triggered aggressive buying and helped the index recover more than 4,000 points from its intraday low.

Read: PSX plunges over 3,000 points as oil surge sparks panic selling

Trading activity remained exceptionally strong, with around 278million shares traded, reflecting the heightened volatility and aggressive repositioning by investors. The session ultimately ended in positive territory despite the severe early sell-off.

Going forward, volatility is likely to remain elevated, with oil prices and developments around the Strait of Hormuz remaining the key market drivers. Further easing in geopolitical tensions and crude prices could support the recovery, while another spike in oil prices may quickly revive selling pressure.