PSX gains over 1,300 points on lower oil prices, budget optimism

• Previous session's close was 168,953.70 points.
• Oil prices fall after Iran, Israel halt attacks.
• Asian stocks also enjoyed a partial rebound.

KARACHI: The Pakistan Stock Exchange (PSX) surged by more than 1,300 points on Tuesday as lower international oil prices and improving political sentiment fuelled investor confidence.

The benchmark KSE-100 Index gained 1,376.86 points, or 0.81%, to close at 170,330.56 points, compared with the previous close of 168,953.70 points.

“PSX is rising due to international oil prices coming down after yesterday’s escalation on the Iran-Israel front ended,” said Ahfaz Mustafa, chief executive officer of Ismail Iqbal Securities.

He added that reports of the federal budget being finalised and likely to be presented on June 12 also provided relief to market participants.

“On the [local front], rumours of the budget being finalised and presented on the 12th gave participants some relief on the political front, ensuring that there was no real opposition to the budget and that it would be passed,” Mustafa said.

Oil prices fell on Tuesday, erasing most of the previous session's gains, ‌after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump, though both sides warned they could resume hostilities.

Asian stocks enjoyed a partial rebound from the previous day’s rout as investors returned to the AI trade, while easing Middle East tensions also provided support.

The gains across most equity markets followed a rebound on Wall Street, fuelled by a race to pick up cheaper assets following a sell-off sparked by bets on a US interest rate hike and warnings over tech firms’ valuations.