Bulls took control of the Pakistan Stock Exchange (PSX) on Monday as the benchmark index recovered over 900 points.
The KSE-100 index gained 954.77 points (0.59 per cent) to close at 163,948.94 points from the previous close of 162,994.17 points.
The index had begun the day on a positive note, reaching an intraday high of 167,245.54 at 10:39am after gaining 4251.37 points from the previous close.
According to Mettis Global, the initial sharp rally came as investors reacted positively to developments surrounding rising tensions between Iran and the United States, alongside efforts to stabilise the situation in key global energy routes.
However, the market witnessed a sharp fall after 3pm, reaching an intraday low of 163,417.84 points.
Oil prices rose about 5pc on Monday after Iran’s Fars news agency reported an incident with a US warship in the Strait of Hormuz, sparking concerns over a prolonged disruption in the vital oil transit route.
Brent crude futures were up $5.52, or 5.1pc, at $113.69 a barrel by 1025 GMT, having settled down $2.23 on Friday. US West Texas Intermediate was up $5.10, or 5pc, at $107.04 a barrel, after a $3.13 loss on Friday.
President Donald Trump said the US would begin efforts to assist ships stranded in the Strait of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.
Monday’s modest gains come after the stock market ended its fourth consecutive session on a jittery note on April 30. The fall reflected investor nervousness over geopolitical tensions and surging oil prices, clouding the economic outlook.
Analysts have warned that Pakistan’s inflation is likely to remain in double digits if the surge in oil prices persists amid the unresolved Middle East conflict, adding that rising costs and disrupted imports are already straining the country’s external position.
