The Pakistan Stock Exchange (PSX) staged a strong recovery on Wednesday as the benchmark KSE-100 Index reversed early losses to gain more than 1,400 points and cross the 180,000 mark during intraday trading.
The market opened under pressure, with the index falling more than 600 points amid renewed concerns over attacks on shipping in the Strait of Hormuz and their potential impact on global energy supplies.
However, buying interest returned across major sectors, pushing the KSE-100 to an intraday high of 180,769 points around 1:00 pm, up 1,433 points from the previous close. By 2:20 pm, the index was trading at 180,343.12 points, gaining 1,007.88 points or 0.56%.
Buying activity was recorded in automobile parts, chemicals, investment companies, oil and gas marketing, refineries, technology and communication, transport and tobacco. Commercial banks and oil and gas exploration companies also attracted investor interest.
The recovery followed Tuesday’s strong rally, when the benchmark index gained 5,448.56 points, or 3.13%, to close at 179,335.24 points. Improved investor sentiment after US President Donald Trump’s remarks about the possibility of peace supported the previous session’s gains.
International markets also advanced on Wednesday. Asian equities rose after strong financial results from AI infrastructure company CoreWeave eased concerns about excessive investment in artificial intelligence. Meanwhile, higher-than-expected US inflation continued to put pressure on global bond yields and raised expectations of a larger Federal Reserve rate increase next month.
Oil prices remained relatively stable near two-month lows as traders weighed hopes of easing tensions in the US-Israeli war with Iran against continued concerns over shipping security in the Strait of Hormuz. Brent crude was trading at $91.68 per barrel, while US West Texas Intermediate stood at $85.98.
