The Pakistan Stock Exchange (PSX) continued its upward momentum on Thursday, with the benchmark KSE-100 Index gaining more than 1,200 points in early trading as falling oil prices and hopes of the reopening of the Strait of Hormuz improved investor sentiment.
By 12:00 pm, the KSE-100 Index was trading at 178,514.38 points, up 1,143.68 points or 0.64% from the previous close.
The market saw broad-based buying across several major sectors, including commercial banks, cement, fertiliser, automobile assemblers, oil and gas exploration companies, oil marketing companies, refineries and power generation.
Investor sentiment was supported by a decline in international oil prices, which eased concerns over energy costs and potential supply disruptions.
Brent crude futures fell $1.07, or 1.2%, to $86.77 per barrel, while US West Texas Intermediate (WTI) crude declined $1.13, or 1.4%, to $81.10 per barrel.
Brent was heading for a fourth consecutive session of declines, while WTI was on track for its fifth straight day of losses.
Markets also drew support from optimism that talks involving Iran and Qatar could eventually lead to the reopening of the Strait of Hormuz, a key global energy transit route.
The PSX remained closed on Wednesday due to Eid Milad-un-Nabi.
Before the holiday, the market closed higher on Tuesday as buying in banking and cement stocks offset selective profit-taking in energy shares. The KSE-100 Index gained 404.02 points, or 0.23%, to close at 177,370.71 points.
The latest advance has extended the market’s recent positive momentum amid improving domestic and international sentiment.
Investor confidence was also supported by Moody’s recent upgrade of Pakistan’s sovereign credit rating by one notch to B3 from Caa1, with the outlook maintained at stable.
Moody’s said the upgrade reflected expectations that improvements in governance would help sustain gains in Pakistan’s external position and strengthen fiscal metrics.
The rating agency also noted that Pakistan’s foreign exchange reserves had increased amid continued macroeconomic stabilization, while lower domestic financing costs and an improved fiscal position had strengthened debt affordability.
Asian equities were trading higher on Thursday after Nvidia reported stronger-than-expected earnings, boosting investor confidence in technology stocks.
MSCI’s broadest index of Asia-Pacific shares excluding Japan gained 0.2%, extending its advance for a third consecutive session.
Nvidia shares jumped 4.7% in after-hours trading after the company reported quarterly revenue growth and provided a stronger-than-expected outlook.
Arif Habib Limited (AHL) previously said the direction of the PSX would remain sensitive to geopolitical developments, while the ongoing corporate earnings season could provide additional support to the market.
For Pakistan’s stock market, developments surrounding oil prices, the Strait of Hormuz and regional tensions are likely to remain important factors for investor sentiment in the near term.
The KSE-100’s latest gains indicate continued buying interest across major sectors as investors respond to improving domestic indicators and easing concerns over global energy supply disruptions.
