Key Takeaways
- The KSE-100 Index gained nearly 2,800 points during Thursday's trading session.
- Buying interest was observed in key sectors including automobile and cement companies.
- Investors remained cautious due to geopolitical tensions in the Middle East.
The Pakistan Stock Exchange (PSX) witnessed a significant surge on Thursday, with the benchmark KSE-100 Index gaining nearly 2,800 points during opening hours. By 11:55am, the index was hovering at 178,063.85, up by 2,778.07 points or 1.58%. This marked a strong recovery from Wednesday’s sharp sell-off, where the KSE-100 Index gained 1,766.97 points, or 1.02%, to close at 175,285.78 points.
Buying interest was widespread across various sectors, with key players such as automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, OMCs (Oil Marketing Companies), power generation, and refineries all showing positive trends. Index-heavy stocks like ARL, HUBCO, OGDC, POL, PPL, PSO, SSGC, MCB, MEBL, and UBL traded in the green.
However, caution among investors persisted due to ongoing geopolitical tensions in the Middle East. These tensions have led to heightened volatility in global markets, with international shares experiencing a downturn on Thursday. Asian shares fell as chipmakers stumbled ahead of results from bellwether TSMC, while bonds benefited from a benign reading on US inflation that lessened the risk of an imminent rate hike.
Oil prices continued their upward trajectory, rising 0.6% to $85.45 a barrel, adding to this week’s gain of 12%. This increase was driven by hostilities in the Middle East, with Washington reimposing a naval blockade on Iran's ports and Tehran warning of an “existential war” with America.
The selling pressure extended to Asia, with MSCI’s broadest index of Asia-Pacific shares outside Japan sliding 1.7%. South Korea’s KOSPI slumped 6.3% due to weakness from Samsung (down 8%) and SK Hynix (down 11%). Japan’s Nikkei dropped 3%, while Taiwanese shares fell 0.5%. China’s Hang Seng Index, however, gained 1.2%.
All eyes are on the quarterly earnings from Taiwan Semiconductor Manufacturing Co., which is expected to notch a fifth consecutive quarter of record earnings with a 59% surge in net profit for April-June. Despite this positive outlook, investors remain cautious as shares of ASML, the world’s dominant supplier of equipment needed to make high-tech computer chips, finished 0.4% lower after it raised its 2026 sales forecasts and pledged a capacity boost.
The PSX's strong performance on Thursday reflects both domestic and international market dynamics. While geopolitical tensions continue to cast a shadow over global markets, the KSE-100 Index’s resilience suggests that local investors remain optimistic about future prospects.
