The Pakistan Stock Exchanges benchmark index had a good day on Tuesday but people who invest in the market were still being careful. They were worried about what’s going on with energy all around the world.
The KSE-100 index started the day on a note it went up by 2,442.72 points to reach 178,370.45 at 10:09am. But then the market started to go down fast from 12pm onwards it even went below 177,000 points at 1:56pm.
At the end of the day the Pakistan Stock Exchanges benchmark index closed at 176,133.56 points it was up by 205.83 points, which is a very small increase of 0.12 per cent from the day before.
Topline Securities Ltd said that the market had a start but it did not last very long. People who invest in the market decided to take their money out when the index was high which made the market go down during the half of the day.
The Pakistan Stock Exchanges benchmark index closed low because people who invest in the market were still being careful. There are a lot of problems in the world and people are not sure what will happen with energy so they are being very selective about what they invest in. Topline Securities Ltd also said that people who invest in the market are worried, about what’s going on in the world and how it will affect oil prices, inflation and foreign investment.
The Pakistan Stock Exchanges benchmark index was also affected by what’s going on with refinery stocks. Topline Securities Ltd said that refinery stocks went down because people think that the new refinery policy might be delayed. The Pakistan Stock Exchanges benchmark index and people who invest in the market are waiting to see what will happen next.
Earlier in the day, KSE-100 had witnessed a strong rally as markets weighed reports of mediation efforts between the US and Iran against an exchange of fresh attacks between the two. As of 1:15pm PKT, global oil prices had fallen by more than 1pc.
However, the majority of the early market gains eroded as oil prices rose by nearly 2pc, following continued hostilities in the Gulf as well as threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.
Brent crude futures rose $1.62, or 1.8pc, to $90.84 a barrel by 4:52pm PKT.
The front-month US West Texas Intermediate crude contract, which expires on Tuesday, was up $1.37, or 1.7pc, at $84.60. The more active contract for September delivery rose $1.48, or 1.8pc, to $83.96.
Awais Ashraf, director of research at AKD Securities, said the market extended the previous session’s late recovery as “oil prices retreated from a one-month high amid renewed mediation efforts between the US and Iran”.
“Investor sentiment is also being supported by optimism surrounding the ongoing earnings season, with oil and gas exploration, cement, refinery and textile companies expected to post stronger-than-usual results,” he said.
The stock exchange had opened the week on Monday on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in the green with a meagre gain.
