PSX: KSE-100 gains over 1,000 points
- Benchmark index settles at 169,043.19
The Pakistan Stock Exchange's KSE-100 Index gained significantly on Thursday, recovering from previous losses, as buying interest emerged amidst global market reactions to the US Federal Reserve's rate hike.
- Thursday's significant gains at the Pakistan Stock Exchange.
- Key sectors and stocks driving PSX buying interest.
- Wednesday's PSX decline and macroeconomic concerns.
- Global market response to the US Federal Reserve's rate hike.
Buying interest was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling with a gain of over 1,000 points on Thursday.
The benchmark index initially came under pressure, falling sharply in early trading towards the intraday low of 168,222.91, before recovering steadily through the late-morning session.
The benchmark gained momentum around 11am, climbing towards 169,300, and extended the advance to its intraday high of 169,576.52 around midday.
However, the upward momentum faded in the afternoon, with the index gradually retreating and moving mostly sideways before another sharp dip in the final hours took it close to the day’s low.
The market then staged a late-session recovery, lifting the KSE-100 to 169,300 level.
At close, the KSE-100 Index settled at 169,043.19, up by 1,021.39 points or 0.61%.
“The recovery was supported by selective buying across key index-heavy stocks following the recent correction. However, market sentiment remained cautious amid ongoing focus on global oil prices, geopolitical developments, domestic macroeconomic indicators, and institutional flows,” said Topline Securities in its post-market commentary.
UBL, PPL, MARI, BAFL, and HBL were the major contributors, collectively adding approximately 493 points to the index. On the other hand, NBP, GHNI, and FFC emerged as the leading drags, collectively shaving around 88 points off the KSE-100, it added.
On Wednesday, the PSX remained firmly under selling pressure as elevated international oil prices and persistent regional geopolitical tensions dented investor sentiment, prompting widespread profit-taking across key sectors.
Concerns over macroeconomic stability, external account pressures and the risk of prolonged disruption in global oil markets weighed on the market throughout the session.
The benchmark KSE-100 Index plunged 1,370.52 points, or 0.81%, to close at 168,021.80 points.
Internationally, shares edged up in Asia on Thursday as investors bet the Federal Reserve is finally getting the jump on inflation, delivering its first rate hike in more than three years and calming a global bond selloff that had sent long-term yields soaring.
The US dollar hit a seven-week high against its major peers, underpinned by a jump in short-term Treasury yields as markets ramped up wagers that the Fed may have to lift rates again, with a move by December fully priced in. That proved a headwind for commodities, with oil prices giving back ground.
The focus now shifts to the Bank of England, which is widely expected to leave interest rates steady later in the day, but all eyes will be on any hint about whether high energy prices could force it to hike in November. The Bank of Japan, by contrast, is all but certain to lift interest rates on Friday.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% while Japan’s Nikkei gained 0.5%. Chinese blue-chips slipped 0.4%, and Hong Kong’s Hang Seng fell 0.9%.
Nasdaq futures gained 0.6%, and S&P 500 futures bounced 0.5%, after small declines on Wall Street.
As widely expected, the Fed raised interest rates by a quarter point overnight, but the unanimous decision tilted to the hawkish side, with the board signalling one more rate hike this year. Goldman Sachs now expects the Fed to hike rates again in October.
Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Thursday. The local unit closed the day at 277.26, a gain of Re0.01 against the greenback.
Volume on the all-share index increased to 386.37 million from 356.14 million recorded in the previous close.
The value of shares improved to Rs20.09 billion from Rs19.49 billion in the previous session.
Media Times Ltd was the volume leader with 42.16 million shares, followed by Cnergyico PK with 25.97 million shares, and Naya Nazimabad with 15.73 million shares.
Shares of 500 companies were traded on Thursday, of which 296 registered an increase, 152 recorded a fall, and 52 remained unchanged.
























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