Business
Oil dips, stocks mixed on US-Iran truce hopes
– Stock markets were mixed while oil prices fell again on Friday (May 29) on investor optimism that the United States and Iran would reach a deal to extend their ceasefire – despite Washington and Tehran offering conflicting views on the state of negotiations.
Oil markets have been up and down this week as investors assess the chances of a breakthrough deal that could potentially resume shipping through the crucial Strait of Hormuz.
Those hopes had been briefly dashed by new US military strikes on Iran on Wednesday, countered by the Revolutionary Guard’s targeting of an American airbase in the region.
On Friday, US President Donald Trump held a meeting during which he said he would make a “final determination” on a peace deal. Iran’s foreign ministry said negotiations were ongoing and there was no final agreement.
Nevertheless, the reports of progress sent the S&P 500 to a record high before it pared those gains slightly at the close. Other Wall Street indices also rose on Friday, while Europe’s main markets were flat ahead of the weekend.
While details of the possible agreement are scarce, “oil traders are taking an optimistic view that the end could be in sight for disruption in the region,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
However, “the market’s patience may be tested if a deal is not agreed by early June, and this could have big ramifications for the oil price and the global stock market rally,” said Kathleen Brooks, research director at XTB.
Art Hogan of B. Riley Wealth Management told AFP the tech sector was continuing to drive equity markets.
“It looks like we’ll wrap up a ninth consecutive week of higher markets, largely driven by some new names coming out to be beneficiaries of artificial intelligence today,” he said, citing Dell, Micron and SanDisk among individual companies that have delivered big gains.
EUROPEAN INFLATION
In Europe, French data showed Friday that its economy contracted 0.1 per cent in the first quarter, while inflation in May accelerated to 2.4 per cent, above the ECB’s target of two percent.
Germany saw inflation slow in May to 2.6 per cent, though analysts still expect an interest rate hike for the eurozone, possibly at the next ECB meeting on June 11.
Still, “recession risks are easing as oil prices moderate and the probability of worst-case scenarios fades,” wrote Matthew Martin of Oxford Economics.
“While reduced risks from the war have helped, the improvement in equity prices is mostly because of a robust earnings season. The driver is overwhelmingly AI-related capital expenditure,” he said.
Global AI bullishness has driven a historic rally recently, this week pushing the market capitalizations of chipmakers Micron and SK hynix across the US$1 trillion threshold.
Seoul’s stock market led the charge in Asia on Friday, surging 3.6 per cent while Tokyo’s Nikkei closed at a record high.
Business
Saudi delegation eyes Karachi port investments as Pakistan expands maritime trade
A Saudi business delegation led by Prince Mansoor bin Mohammed Al Saud has expressed interest in investing in Karachi’s port infrastructure, logistics links and green initiatives, Pakistani authorities said Monday, as Islamabad seeks to expand maritime cooperation with its longtime Gulf ally.
The visit comes amid efforts by Pakistan and Saudi Arabia to expand economic partnership from traditional trade, remittances and financial support to investment-based cooperation in infrastructure, energy and other areas. Pakistan is also seeking to modernize its ports, improve connections with land transport networks and expand transshipment operations to strengthen its position in regional trade.
Prince Mansoor, Chairman of the Saudi Arabian Chapter of the Saudi-Pakistan Joint Business Council, led a high-level corporate delegation to Karachi Port Trust (KPT), Port Qasim and South Asia Pakistan Terminals Limited, where officials were briefed on investment opportunities and ongoing modernization projects.
The briefings focused on the proposed 140-acre Maritime Business District in Karachi and the development of Manora Shipyard.
“Prince Mansour expressed keen interest in KPT’s Maritime Business District, Green port initiatives, terminal infrastructure expansion and connectivity initiatives, recognizing their scope for mutually beneficial Saudi investment and joint ventures,” the KPT said in a statement. The Saudi-Pakistan Joint Business Council serves as a platform for companies and investors from both countries to identify commercial opportunities, develop partnerships and form joint ventures. Prince Mansour has led several delegations to Pakistan as the two governments seek to translate their long-standing political and defense ties into greater private sector investment. In June, KPT signed a memorandum of understanding with its Saudi Arabian and Pakistani partners to explore the development of a maritime business zone on MT Khan Road in Karachi.
The proposed development involves the Saudi Arabian Business Council – Najd Gateway Holding Company, Arif Habib Dolmen REIT Management Limited and a consortium of Pakistani companies and is intended to accommodate commercial and maritime businesses.
Business
Bullish momentum continues as PSX gains over 300 points
The Pakistan Stock Exchange (PSX) opened in positive territory on Wednesday with the benchmark KSE-100 gaining 309 points in early trade.
The index rose to 179,600 points, continuing the upward momentum in the market at the start of the third trading day of the business week.
The latest gains follow a strong performance in the previous session, when the stock market maintained its upward trend throughout trading.
At the close of Tuesday’s session, the KSE-100 Index had surged by 5,448 points to settle at 179,335 points.
Business
Pakistan, Saudi Arabia investors launch fund to boost trade, investment
A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the countries’ broader push to deepen two-way trade and private sector investment.
The Saudi-Pakistan Joint Business Council, formed by the governments of both countries, said the fund’s initial size is “multi hundred million”, which is expected to expand based on opportunities across sectors.
Three-fourths of the fund will be invested in Pakistan, while the rest will be invested in Saudi Arabian projects, the council said in a statement.
The launch of the fund comes at a time when Islamabad and Riyadh are deepening longstanding ties, especially in defense, amid few signs of a breakthrough in the months-long US-Iran conflict.
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