Stocks climbed on Thursday as institutional buying returned on easing fuel-supply fears after Saudi Arabia assured Pakistan of facilitating crude shipments via the Red Sea port of Yanbu, while higher global oil prices and optimism over an expected International Monetary Fund (IMF) tranche supported sentiment.
During the session, the benchmark KSE-100 Index climbed to an intraday high of 159,604.06 points, gaining 3,826.85 points, or 2.46%, from the previous close of 155,777.21, and saw an intraday low of 156,250.28, up 473.07 points, or 0.30%.
“Stocks staged a recovery at PSX amid institutional activity on easing fuel supply fears after Saudi oil supplies through the Red Sea port,” said Ahsan Mehanti, Managing Director and Chief Executive Officer (CEO) of Arif Habib Commodities.
“Higher global crude oil prices, expected release of IMF tranche and upbeat economic data played a catalyst role in bullish activity at PSX,” he added.
Pakistan on Wednesday sought an alternative oil supply route through Saudi Arabia’s Red Sea port of Yanbu after Iran announced the closure of the Strait of Hormuz, a development that threatens a major portion of global energy flows.
The request was made by Federal Minister for Petroleum Ali Pervaiz Malik to Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki during a meeting, according to a statement by the petroleum division. Malik said the bulk of Pakistan’s oil and energy supplies normally pass through the Strait of Hormuz and that the government was monitoring developments daily to ensure continuity of supplies.
According to the minister, Saudi authorities assured Pakistan that oil supplies could be facilitated through Yanbu to meet Pakistan’s energy needs, adding that one vessel had been assured dispatch for lifting crude oil for Pakistan and that supplies from Yanbu would be prioritised. Malik thanked the Kingdom for its continued support.
Oil prices surged more than 3% on Thursday, extending a rally as the escalating US-Israeli war with Iran raised fears of prolonged disruptions to vital Middle East oil and gas supplies. Brent crude rose $2.65, or 3.26%, to $83.99 per barrel, while US West Texas Intermediate (WTI) gained $2.76, or 3.70%, to $77.42.
Crude markets remained on edge amid risks to supply and concerns over the flow of crude through the Strait of Hormuz, ANZ analysts said in a note.
Iraq, the second-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), has cut output by nearly 1.5 million barrels per day due to lack of storage and an export route, officials told Reuters, while Qatar declared force majeure on gas exports, with sources saying normal production volumes may take at least a month to resume.
At least 200 ships, including oil and liquefied natural gas (LNG) tankers, remained at anchor off the coast of major Gulf producers including Iraq, Saudi Arabia and Qatar, according to Reuters estimates based on ship-tracking data from MarineTraffic.
In the previous session, the KSE-100 Index fell by 1,354.88 points, or 0.86%, to 155,777.21 points from 157,132.10 points. The index touched an intraday high of 157,962.48 points, while the day’s low was 154,790.74 points.
