Amid US-Iran tensions, PSX observes cautious trade

Amidst the uncertainties surrounding the US-Iran peace pact, the Pakistan Stock Exchange (PSX) saw moderate activity on Tuesday.

The benchmark index KSE-100 increased 297.76 points, or 0.18%, from the previous closing of 163,948.94 to 164,246.70 points during intraday trade.

A total of 45.8 million shares were traded, with a high of 164,293.30 and a low of 162,532.98.

As trading got underway, investors’ cautious optimism was evident as the total market value reached 3.42 billion PKR.

As the United States and Iran continue to work toward a truce while trading blows over the Strait of Hormuz, Asian stocks fell on Tuesday while oil prices decreased but remained far above $100 per barrel.

Following the Japanese currency’s modest surge in the previous session, which fueled rumors of another wave of Tokyo intervention, traders were also keeping an eye on the yen.

The biggest index of Asia-Pacific stocks outside of Japan, MSCI (.MIAPJ0000PUS), saw a 0.3% decline. While markets in South Korea and Japan were closed for a holiday, Australian shares (.AXJO) saw a 0.4% decline in reduced Asia trade.

Shortly after U.S. President Donald Trump made a fresh attempt to get stalled tankers and other ships through the crucial energy-trade chokepoint, the United States and Iran launched new attacks in the Gulf on Monday as they fought for control of the Strait of Hormuz with dueling naval blockades.

Maersk (MAERSKb.CO) reported that on Monday, the Alliance Fairfax, a vehicle carrier flying the American flag and run by its Farrell Lines subsidiary, crossed the Strait of Hormuz with American military personnel.

In the oil markets, U.S. crude dropped 1.3% to $105.03 after rising in the previous session due to increased concerns about supply disruption, while Brent crude futures dropped 0.5% to $113.85 a barrel.

Aside from geopolitics, investors were also anticipating this week’s earnings reports, with Advanced Micro Devices (AMD.O) and Pfizer (PFE.N) among those scheduled to do so later in the day.