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 media.
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.
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.
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