The Pakistan Stock Exchange (PSX) saw bullish momentum during the early hours of trading on Thursday, as investors rejoiced after the US struck a trade deal with Pakistan.
At 9:50am, the benchmark KSE-100 index was hovering at 139,657.99 level, an increase of 1,245.74 points or 0.90%.
Across-the-board buying was observed in key sectors, including automobile, cement, commercial banks, fertilizer, oil and gas exploration companies, OMCs, refinery and power generation. Index-heavy stocks including HUBCO, PSO, SNGPL, MARI, OGDC, PPL, POL and SSGC traded in the green.
Analysts attributed the buying spree to investor optimism after the US and Pakistan struck a deal that will result in lower tariffs for the South Asian nation, as well as an agreement in which Washington will help develop Islamabad’s oil reserves.
“We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” US President Donald Trump wrote on social media on Wednesday.
“We are in the process of choosing the Oil Company that will lead this Partnership.”
Trump’s social media post did not provide further details.
Meanwhile, Pakistan’s Finance Minister Muhammad Aurangzeb, in a video message on Thursday, termed the trade deal a “win-win” situation for both countries.
“We are in a good place today in Pakistan, in terms of where we have arrived before August 1. We have come a long way in terms of our overall strategic partnership between Pakistan and the United States,” he said.
Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
On Wednesday, the PSX experienced a mixed day of trading with some indices posting gains as the State Bank of Pakistan kept the policy rate unchanged at 11%.
The KSE100 rose by 447.43 points, or 0.32%, reaching 138,412.25 points from its previous close of 137,964.82 points.
Internationally, Asian equities slipped on Thursday after weaker-than-expected Chinese activity data and a plunge in copper prices, while investors weighed a trade deal between South Korea and the US
The dollar held near a two-month high as investors weighed a Federal Reserve decision to hold rates steady and strong earnings from megacap tech firms.
Nasdaq futures surged 1.2% after better-than-expected earnings from Microsoft and Meta Platforms.
S&P 500 futures advanced 0.8%, while the US dollar held steady after hitting a two-month high.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.7%, though still on track for its fourth consecutive monthly gain in July.
This is an intra-day update
