PSX: Buying returns, KSE-100 up 2,000 points

Business Recorder reported that buying returned to the Pakistan Stock Exchange on Tuesday, with the KSE-100 index adding nearly 2,000 points in the opening minutes. By 9:35am the benchmark stood at 169,970.23, a gain of 1,999.58 points or 1.19%. Investors bought across several groups, including automobile makers, cement, banks, exploration firms, oil marketers, power generators and refineries.

Heavyweight index stocks were also in positive territory, with HUBCO, MARI, OGDC, PPL, POL, PSO, MCB, MEBL, HBL and NBP trading higher. Separately, the SBP's foreign exchange reserves climbed to a record $21.4 billion, helped by Eurobond inflows. Those inflows came from a dual-tranche Eurobond sale in the first week of September that raised some $3 billion, its largest global bond transaction ever.

The rebound followed a sharp sell-off on Monday, when the index closed at 167,970.66 after losing 2,541.20 points. Sentiment had been hit by the escalating US-Iran conflict, attacks on vessels near the Strait of Hormuz and oil prices holding above US$100 a barrel. Investors were also worried about fuel inflation, a larger import bill and the direction of monetary policy. Across Asia, shares were weak on Tuesday as traders awaited a Federal Open Market Committee meeting, where markets price in a 90% chance of a rate hike, the Fed's first since mid-2023.