PSX Rallies, KSE-100 Jumps 900 Points Despite Stalled Talks

Index climbs to 180,997, up 0.5%, led by banking, energy and cement stocks Positive sentiment prevailed at the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index surging over 900 points, even as diplomatic efforts to ease Middle East tensions remained stalled. According to the PSX website, the market opened on a bullish note, with the KSE-100 climbing to 181,158.86 in the early minutes of trade and sustaining its positive momentum through the session. Buying interest was concentrated in key sectors including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refineries. As of 2:50 pm, the index stood at 180,997.26, up 892.65 points, or 0.5%, from the previous close. The rally follows a rough week for the exchange, which settled under pressure amid uncertainty over the extension of the US-Iran ceasefire and concerns over oil supplies through the Strait of Hormuz and Red Sea. Investor sentiment took a hit despite strong domestic fiscal and external-sector indicators, with the KSE-100 shedding 1,325.41 points, or 0.7%, week-on-week to close at 180,104.61 points. Global shares edged higher, and the dollar slipped ​towards two-month lows on Monday after a run of soft U.S. economic data, including an unexpected drop in retail sales, saw markets ‌reduce bets for an imminent rate hike from the Federal Reserve. A hike next month is now priced at 30%, down sharply from about 50% a week earlier, according to the CME Group's FedWatch tool. The STOXX benchmark of 600 big European companies rose 0.21%, following earlier gains in MSCI's broadest index of Asia-Pacific shares outside Japan, which rose 0.5%, while ​Japan's Nikkei edged 0.3% higher. South Korea's stock markets were closed on Monday for a ​public holiday. There was subdued reaction in the Korean won after U.S. President Donald Trump instructed the Pentagon to substantially reduce joint military exercises with the country. U.S. stock markets looked set to continue the warily positive tone when ​they open later on Monday, with Nasdaq ​futures firming 0.5% and S&P futures ⁠up 0.2%. The bullish run in stocks has been driven by diminishing risk that the Federal Reserve will raise interest rates next month. U.S. retail sales posted the first decline in nine months in July and consumer sentiment soured by more than ​expected, adding to soft inflation readings. Brent crude futures were up 27 cents or 0.31% at $88.79 by 0806 GMT after hitting a session high of $89.40. U.S. West Texas Intermediate crude futures fell 24 cents ​or 0.29% to $82.16 a barrel.