Following the footsteps of regional markets, buying momentum returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 3.5% on Thursday.
Positive momentum was observed throughout most of the trading session.
The benchmark index accelerated sharply, climbing past 160,000 points by early afternoon, reflecting strong market confidence. The KSE-100 hit an intraday high of 161,476.84 during the final minutes of trading.
At close, the benchmark index settled at 161,210.67, up by 5,433.46 points or 3.49%.
“Global markets are trading in positive territory, which is supporting sentiment in the local market,” Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder.
Moreover, the KSE-100 Index is gaining momentum due to strong performance from heavy-weight stocks, particularly in the oil sector, where E&Ps and refineries are witnessing strong buying interest, he said.
“Higher international oil prices are expected to support earnings of E&P companies, while the absence of gas curtailment and ongoing production enhancement initiatives is likely to further boost output,” added Hanif.
Topline Securities, in its post-market commentary, said that strong institutional buying turned the tide after the market’s recent overreaction to regional issues, as confidence swiftly replaced caution.
“It was not merely a rebound, but a statement rally marked by decisive accumulation and broad-based strength,” said Topline.
Index-heavy constituents—including HUBC, OGDC, FFC, ENGROH, and MEBL—led the charge, collectively contributing 2,197 points to the benchmark’s gain and reinforcing the bullish undertone, added the brokerage house.
On Wednesday, PSX witnessed another volatile session with the benchmark KSE-100 Index settling in the red as cautious investor sentiment, geopolitical uncertainty and broad intraday swings kept participants on the defensive.
The KSE-100 Index declined by 1,354.88 points or 0.86% to close at 155,777.21 points.
Globally, Asian shares rallied on Thursday with a decline in US Treasuries, pointing to a tentative recovery in risk appetite that has been hammered by the escalating war in the Middle East.
South Korea’s KOSPI gauge recovered its steep losses in the prior session following a rally on Wall Street on hopes the United States and Iran will seek an off-ramp from hostilities. Oil and gold traded higher.
China set its growth target at a slightly lower pace than the previous year in a closely watched, wide-ranging economic plan.
The US Senate backed President Donald Trump’s military campaign against Iran, suggesting no quick resolution to a war that has roiled financial markets, transportation networks, and energy production.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 2.9%. South Korea’s KOSPI led regional benchmarks with a 10.4% surge, while Japan’s Nikkei jumped 2.9%.
The yield on benchmark US 10-year notes rose 2.7 basis points to 4.109%, as the 30-year bond yield rose 3.1 basis points to 4.7479%.
The U.S.-Israel war on Iran widened sharply on Wednesday after a U.S. submarine sank an Iranian warship and NATO air defences destroyed an Iranian ballistic missile fired towards Turkey.
But equity markets in Europe and the U.S. took solace from a pledge by Trump to protect shippers and a New York Times report that Iranian intelligence had reached out to the CIA early in the war about a path towards ending it.
Meanwhile, the Pakistani rupee registered a marginal gain against the US dollar in the inter-bank market on Thursday. At close, the local currency settled at 279.41, a gain of Re0.01 against the greenback.
Volume on the all-share index jumped to 723.88 million from 622.69 million recorded in the previous close.
The value of shares increased to Rs35.18 billion from Rs29.95 billion in the previous session.
K-Electric Ltd. was the volume leader with 115.63 million shares, followed by Trust Sec. & Bro.(R) with 50.03 million shares, and Unity Foods Ltd with 48.31 million shares.
Shares of 478 companies were traded on Thursday, of which 350 registered an increase, 78 recorded a fall, and 50 remained unchanged.
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