Bullish momentum returned to the Pakistan Stock Exchange (PSX) amid return of optimism among investors, as the benchmark KSE-100 Index gained nearly 2,700 points during the second half of Friday’s trading session.
Buying persisted throughout the trading session, pushing the KSE-100 Index to an intra-day high of 114,546.87.
At 4:30pm, the benchmark index was hovering at 114,156.30, an increase of 2,829.73 points or 2.54%.
Across-the-board buying was observed in key sectors, including automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, OMCs, power generation, and refinery. Index-heavy stocks ARL, PRL, HUBCO, PSO, MARI, OGDC, PPL, HBL, and NBP traded in the green.
Market experts attributed the rally to several factors, particularly growing expectations of a de-escalation in tensions between Pakistan and India.
In April, Pakistan’s stock market suffered due to rising tensions with India as the benchmark KSE-100 shed over 6,480 points on monthly basis.
On Wednesday, US Secretary of State Marco Rubio urged India and Pakistan to work with each other to de-escalate tensions after last week’s militant attack in IIOJK.
“Moreover, inflation figures are scheduled to be released today, and we expect it to be around 0.45%,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.
“The market also anticipates another cut in the upcoming Monetary Policy Committee (MPC) expected next week,” she added.
It is pertinent to mention that PSX was closed on Thursday on account of Labour Day.
Internationally, Asian stock markets and US futures rose on Friday as signs of possible trade talks between the US and China lifted risk sentiment after lacklustre earnings from tech bellwethers Apple and Amazon fuelled worries about the impact of tariffs.
China’s commerce ministry said on Friday the United States has repeatedly expressed its willingness to negotiate on tariffs and that Beijing’s door is open for talks.
The comments helped US stock futures reverse course from earlier falls after Apple trimmed its share buyback program and warned tariffs could add about $900 million in costs this quarter.
Futures for the S&P 500 rose 0.6% while those for Nasdaq were 0.3% higher. Japan’s Nikkei gained 1% on a weaker yen, and Taiwan stocks surged 2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4.
In commodities, gold prices eased to $3,234.9 per ounce, on course for its weakest weekly performance in two months due to slowing safe-haven demand.
Oil prices jumped after Trump threatened secondary sanctions on Iran. Brent crude futures rose 0.56% while US West Texas Intermediate crude futures gained 0.6%.
This is an intra-day update
