Strong buying in banking, cement, fertilizer, oil marketing and power stocks pushes Pakistan’s benchmark index higher amid positive global market signals.
KARACHI: The Pakistan Stock Exchange (PSX) opened Thursday’s session on a positive note, with the benchmark KSE-100 Index gaining more than 500 points as investors returned to major sectors.
At around 9:45am, the KSE-100 Index was trading at 180,864.26 points, up 553.05 points, or 0.31%, from the previous close of 180,311.22 points.
Buying interest was visible across several key sectors, including cement, commercial banks, fertilizer, oil marketing companies and power generation firms. Index-heavy stocks such as HUBCO, Fauji Fertilizer Company, MCB Bank, National Bank of Pakistan and United Bank Limited were among the companies trading in positive territory.
The latest advance follows a recovery in Wednesday’s session, when the market rebounded after two consecutive sessions of profit-taking. Investor sentiment also received support from reports surrounding efforts to extend the US-Iran ceasefire, easing some concerns over regional geopolitical risks.
Global Markets Offer Support
Positive signals from international markets also provided support to local investors. Asian equities advanced on Thursday after fresh US inflation data broadly met market expectations.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.97%, while South Korea’s benchmark index climbed 4.4%. Japan’s Nikkei also gained 1.86%.
US S&P 500 E-mini futures were meanwhile up 0.02% during Asian trading.
US Inflation and Interest Rates in Focus
US consumer prices increased 0.1% in July, broadly matching economists’ expectations. The data has influenced market expectations surrounding the Federal Reserve’s next interest-rate decision.
According to CME Group’s FedWatch tool, markets were pricing in about a 40% chance of a rate hike next month, down from around 54% a week earlier.
Oil Prices Remain Important for Pakistan
International oil prices remained near $80 per barrel as diplomatic efforts between Washington and Tehran continued.
Oil prices remain a key factor for Pakistan’s economy because changes in crude costs can affect the import bill, inflation, exchange-rate pressures and the earnings outlook for listed companies.
Investors will now watch domestic economic developments, global markets and geopolitical developments closely as Thursday’s trading session progresses.
About The Author
