Stocks surged on Thursday at the Pakistan Stock Exchange (PSX) as investor confidence returned following assurances from Saudi Arabia to facilitate crude oil shipments to Pakistan. The rise came amid concerns over fuel supply disruptions due to the ongoing Middle East tensions and optimism over an expected International Monetary Fund (IMF) tranche.
PSX Performance
The benchmark KSE-100 Index closed at 161,210.67 points, gaining 5,433.46 points (3.49%) from the previous session’s close of 155,777.21. During intraday trading, the index reached a high of 161,476.84 points, up 3.66%, and a low of 156,250.28 points, up 0.3%.
Ahsan Mehanti, CEO of Arif Habib Commodities, said, “Stocks staged a recovery at PSX amid institutional activity on easing fuel supply fears after Saudi oil supplies through the Red Sea port.” He added that higher global crude prices, the expected IMF tranche, and positive economic data all contributed to bullish activity.
Saudi Oil Supply Assurance
Pakistan had sought an alternative oil supply route via Saudi Arabia’s Red Sea port of Yanbu after Iran announced the closure of the Strait of Hormuz, which handles a major portion of global energy flows.
Federal Minister for Petroleum Ali Pervaiz Malik met with Saudi Ambassador Nawaf bin Said Al-Malki, who assured that oil supplies could be prioritised through Yanbu. Malik confirmed that one vessel was already scheduled to lift crude for Pakistan and thanked Saudi Arabia for its continued support.
PSX Rebounds as Institutional Investors Target Value Stocks
Global Oil Market Pressures
Global oil prices surged amid rising tensions in the Gulf. Brent crude increased by $2.65 (3.26%) to $83.99 per barrel, while US West Texas Intermediate (WTI) rose $2.76 (3.70%) to $77.42 per barrel. Analysts highlighted that supply disruptions from Iraq and Qatar, coupled with over 200 ships anchored off Gulf ports, added to market volatility.
Iraq reduced production by nearly 1.5 million barrels per day due to storage limitations, while Qatar declared force majeure on gas exports, with normal volumes expected to resume after at least a month.
Context
The previous PSX session had seen a decline of 1,354.88 points (0.86%), reflecting market nervousness over energy supply risks. Thursday’s surge indicates that reassurances from Saudi Arabia, combined with global oil market trends, provided a temporary boost to investor sentiment.
Key Takeaway: Saudi Arabia’s commitment to facilitate crude shipments through Yanbu has eased fuel-supply concerns in Pakistan, driving a strong recovery at PSX amid global oil market volatility and domestic optimism over IMF support.
