Pakistan Stock Exchange Surges as Investors React to Falling Oil Prices

KARACHI: The Pakistan Stock Exchange (PSX) continued its upward trajectory during the past week, buoyed by declining international oil prices that alleviated inflation fears and sparked renewed investor interest across various sectors.

The KSE-100 index surged by 3,987 points, or 2.29 percent, closing at 177,873.88 points on Friday. It briefly crossed the significant 180,000-point mark during the second-last trading session before profit-taking by investors curtailed the gains. According to Arif Habib Ltd (AHL), the index fluctuated between a high of 180,769 and a low of 176,292 points throughout the week.

Market analysts at Topline Securities attributed the positive momentum to the drop in crude oil prices, which fell to approximately $96.10 per barrel by Friday. This decline, coupled with increased remittances and institutional buying, has fostered a more optimistic investor sentiment, particularly in light of hopes for de-escalation of tensions in the Middle East following the recent US midterm elections.

Looking ahead, investors remain cautious amid ongoing domestic political uncertainties that could influence market stability. Analysts suggest that continued monitoring of international oil prices and domestic political developments will be crucial for the PSX’s performance in the coming weeks.