KSE100 – Trading Strategy

Tresmark: Oil prices have dropped nearly 10% after President Trump warned Iran against blocking the Strait of Hormuz and suggested the conflict could end “very soon.” This has eased immediate supply fears in energy markets and triggered a relief rally across Asian equities.

Given that the KSE100 fell disproportionately during the panic, the index has rebounded sharply, driven by short covering and bargain buying. For traders, the key variable remains oil stability. If Brent holds near or below 90/$, sentiment could improve and allow the market to recover part of yesterday’s losses. However, volatility will remain elevated as Iran has indicated it will decide when the war ends, keeping geopolitical uncertainty in play.

Strategy: Selective buys; square positions by day end.