Shafaqna Pakistan: The Pakistan Stock Exchange (PSX) opened sharply higher on Wednesday, driven by optimism following the US-Iran ceasefire agreement.
At the opening bell, the KSE-100 Index surged 12,362.38 points, rising 8.15 percent to reach 164,035.83 points, up from Tuesday’s close of 151,673.45 points.
Globally, oil prices fell, stocks rallied, and the US dollar weakened as a two-week ceasefire in the Middle East sparked a relief-driven buying spree, raising hopes that oil and gas flows through the Strait of Hormuz could resume.
The upbeat trading comes after weeks of volatility and geopolitical tension, following US and Israeli strikes on Iran in late February, which had pushed the region to the brink and prompted Tehran to effectively block the strategic waterway that carries roughly 20 percent of the world’s oil and gas.
US President Donald Trump on Tuesday agreed to a ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the strait or face devastating attacks on its civilian infrastructure.
Market reaction was swift and dramatic, with U.S. crude futures down around 15% to $96.31 a barrel, while Brent futures also slid 13% to $95.36 per barrel.
S&P 500 futures jumped more than 2%, while European futures leapt more than 5%. The U.S. dollar fell broadly, having been the haven of choice during the tumult.
In Asia, Japan’s Nikkei (.N225), opens new tab surged about 5% while South Korea’s KOSPI (.KS11) rose 6%, triggering a brief halt in trading. That left the MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) up 4%.
Source: Dunya News
