Pakistani stocks recover slightly after US-Iran showdown scare

KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index registered an uptrend on Tuesday after a bearish run the previous day. 

A total of 200 million shares worth Rs9.18 billion exchanged hands during the day's trading. The benchmark index gained 608 points, closing the day at 41,904 points.

Stocks tumbled the previous day, tracking global markets as fears of a possible US-Iran showdown in the Persian Gulf set off an across-the-board panic-selling rampage that led to one of the biggest one-session losses, dealers said.

KSE-100 shares index plunged 2.43 percent or 1,027.06 points to close at 41,296.24 points on Monday, while KSE-30 slumped 2.39 percent or 464.66 points to end at 19,009.10 points level.

Analyst Ahsan Mehanti from Arif Habib Corporations said, “Stocks were hit by record loss as global equity sell-off continues on US-Iran tensions feared to culminate in a military conflict”.

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Mehanti said late session support was witnessed in blue chip stocks amid surging global crude oil prices and upbeat data presenting 31 percent reduction in trade deficit for July-December 2019 to $11.64 billion and higher exports.

“Rupee instability and concerns over ongoing foreign outflows dragged the market down,” he added.