Equities rose on Monday as easing oil prices and growing expectations of a Middle East deal revived risk appetite, prompting investors to hunt for value in high-dividend shares after last week’s sharp correction.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 163,948.94 points, up 954.77 points, or 0.59%, from the previous close of 162,994.17.
The index traded between an intraday high of 167,245.54 (up 4,251.37 points, or 2.61%) and a low of 163,417.84 (up 423.67 points, or 0.26%).
“The increasing chances of a deal in the Middle East, coupled with easing oil prices, are bringing back confidence in the market,” said the CEO of Ismail Iqbal Securities.
“Investors are gaining confidence and are value hunting in shares which are giving good dividend yields,” he added.
Oil prices eased after US President Donald Trump said the United States would begin efforts to assist ships stranded in the Strait of Hormuz, although the lack of a US–Iran peace deal kept prices supported above $100.
Trump said on Sunday the US would guide ships safely out of the strait, but shipping through the strategic waterway remained constrained as negotiations continued over the weekend.
Iran has said the US responded to its 14-point proposal via Pakistan and it was reviewing the response, though Trump said it was unlikely to be acceptable.
Trump has prioritised a nuclear deal with Tehran, while Iran has sought to defer nuclear talks until after the war and first lift rival blockades on Gulf shipping.
In the previous session on Thursday, the KSE-100 Index fell 2,829.70 points, or 1.71%, to close at 162,994.17 against the previous close of 165,823.88, after trading between 164,357.47 and 160,391.19. Over the week, the benchmark declined 7,677 points, or 4.5%.
