ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) experienced a significant uptick on Thursday, with the benchmark KSE-100 Index rising by more than 900 points during early trading. By 11:20 AM, the index had reached 114,987.30, marking an increase of 902.77 points or 0.79%.
Sector Performance Drives the Growth
Key sectors driving the market’s positive momentum included automobile assemblers, commercial banks, oil and gas exploration companies, as well as power generation and refining sectors. Major index-heavy stocks such as MARI, OGDC, PPL, HUBCO, ARL, PSO, SSGC, HBL, MCB, and MEBL saw trading in the green, contributing to the KSE-100’s strong performance.
Previous Day’s Market Movement
In contrast, Wednesday’s trading saw the KSE-100 Index close slightly lower, unable to sustain its earlier gains. The index settled at 114,084.54 after a turbulent intra-day session. Despite the dip, the market maintained some level of optimism, reflected in the continued buying activity.
Global Influence on Market Sentiment
The international markets also played a role in boosting local investor sentiment. The global stock market saw gains, particularly in tech stocks in Asia, following a positive performance on Wall Street. Investors reacted positively to US inflation data, which alleviated some concerns regarding the state of the US economy. Meanwhile, US Treasury yields remained elevated as the US faced increasing trade tensions with its partners.
On the currency front, the Euro remained steady after falling back from a five-month high. This was attributed to President Donald Trump’s warning about potential counter-tariffs imposed by the European Union. However, the Euro continued to benefit from the progress towards peace between Russia and Ukraine.
In Asia, major stock indices saw positive movements. Japan’s Nikkei rose by 0.9%, with strong performances from chip-sector giants like Advantest and Tokyo Electron. Taiwan’s tech-heavy equities index gained 0.6%, while South Korea’s KOSPI climbed 0.7%. On the other hand, Hong Kong’s Hang Seng saw a slight retreat of 0.3%.
Impact of Moody’s Outlook on Pakistan’s Banking Sector
A notable development influencing local market sentiment was the upgrade of Pakistan’s banking outlook by global rating agency Moody’s. The agency raised its outlook from stable to positive, which reflects growing confidence in the financial sector and could contribute to more investor optimism in the coming days.
Global and Local Market Outlook
The global market sentiment remained upbeat, with the US S&P 500 and Nasdaq both advancing by 0.5% and 1.2%, respectively. This was driven by a strong rebound in tech stocks, particularly among large-cap companies that had previously underperformed. Futures for both indexes pointed to further positive movement on Thursday.
Overall, Thursday’s positive performance at the PSX highlights strong investor confidence, driven by sector-specific gains and favorable global economic cues.
