Buying observed at bourse, KSE-100 up 600 points

Buying interest returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 600 points during the opening minutes of trading on Thursday.

At 9:38am, the benchmark index was hovering at 175,023.62, up by 593.70 points or 0.34%.

Buying was observed in key sectors, including commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, PSO, MEBL, NBP and UBL, traded in the green.

In a key development, credit ratings agency S&P Global raised Pakistan’s long-term sovereign credit rating to “B” from “B-” on Wednesday, citing stronger institutional stability and effective implementation of reforms under an IMF program.

“The stable outlook reflects our view of Pakistan’s improved political and institutional settings. Entrenched economic reforms will bring about a sustained period of steady growth and fiscal consolidation,” said S&P.

On Wednesday, the PSX remained under heavy selling pressure as escalating geopolitical tensions in the Middle East and persistent concerns over rising international crude oil prices triggered widespread risk-off sentiment and prompted investors to reduce exposure to blue-chip and cyclical stocks.

The benchmark KSE-100 Index settled at 174,429.93 points, losing 1,703.64 points or 0.97%.

Internationally, Asian stocks rose on Thursday after US technology firms outlined significant capital spending plans that are likely to benefit chipmakers in ​the region, while the escalating war in the Middle East sent oil prices to six-week highs.

Rising oil prices have also renewed inflationary concerns, pushing ‌short-term US Treasury yields to 17-week highs as traders wager the Federal Reserve may need to raise interest rates sooner rather than later.

Brent crude futures rose 2% to $96 per barrel in early trading after the US launched a new round of strikes on Iran and Yemen’s Houthis targeted oil tankers in the Red Sea, widening the scope of a conflict that has cast a ​shadow on the global markets.

Earnings from Alphabet and Tesla showed no slowdown in the vast spending on ​AI infrastructure. The search giant raised its capital expenditure plans for the year and now expects to spend between $195 billion and $205 billion.

A lot of the spending is expected to boost Asian chipmakers. That took South Korea’s KOSPI up more than 3%, led by SK Hynix and Samsung Electronics. Japan’s Nikkei was up 1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan ​gained about 1% in early trading, set for a 3% rise for the week, snapping a two-week losing streak.

This is an intraday update