KSE-100 jumps nearly 3,300 points at open after Trump remarks on Iran
The KSE-100 gained 3,343 points, or 1.89%, to 177,230.29 by 10:07am on Tuesday. Buying followed Donald Trump's remark that US military action against Iran is not necessary "at this point".
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- KSE-100 stood at 177,230.29 at 10:07am, up 3,343.29 points or 1.89%.
- Buying came after Donald Trump said US military action against Iran is "not necessary at this point".
- Asian stocks rose and oil prices fell after the statement.
Buying returned to the Pakistan Stock Exchange on Tuesday, with the benchmark KSE-100 gaining nearly 3,300 points in the opening hours of trading. The rise followed a statement by US President Donald Trump that US military action against Iran is "not necessary at this point".
According to Business Recorder, the index was at 177,168.09 at 9:45am, up 3,281.41 points or 1.89%. By 10:07am the index was at 177,230.29, up 3,343.29 points or 1.89%, according to 24 News.
Buying was seen in automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation. Index-heavy stocks including MARI, OGDC, PPL, PSO, HUBCO, HBL, MCB, MEBL and UBL traded in positive territory.
The rally follows a strong previous week. The index closed last week at 173,886.69 points, having gained 7,477.44 points, or 4.5%, over the week. 24 News described it as the strongest weekly rally in nearly six months.
Regional markets also moved higher. Asian stocks rose on Tuesday after oil prices dropped following Trump's statement that he plans to hold off on new military strikes against Iran. Brent crude futures were at their lowest levels since early September, well below $100 per barrel.
Investors pinned hopes on possible talks between the US and Iran. Nick Twidale, chief market strategist at ATFX Global, said "the latest developments offered hope that an end to the conflict could be approaching, but there was still a considerable gap between diplomacy and a lasting peace agreement".
The US-Israeli war with Iran erupted at the end of February and has stoked inflationary concerns, spurring major central banks to raise rates in recent months. On Monday the S&P 500 closed up 2.35%, its biggest one-day jump since April, and the Nasdaq closed 2.7% higher, its best day in over four months. Earnings reports from tech companies, including CoreWeave, are due this week.
Background
khabr.pk reported on 6 November that the KSE-100 lost 1,493 points on Friday to close at 173,887 on profit-taking, while gaining 7,477 points over the week. On 31 October khabr.pk reported that Iran had warned any new US military action could widen the war while Qatari mediators held talks in Tehran.
Why it matters for Pakistan
Many Pakistani investors, savers and pension holders have money tied to the stock market, so a move of this size changes the value of their holdings. The gains were seen in banks, oil and gas, cement, automobile and power stocks, sectors with large weight in the index. Oil prices also matter to Pakistan, where petrol was Rs346 and diesel Rs378 per litre on 7 November, according to khabr.pk records.
