PTBP Web Desk
The KSE-100 Index gaining more than 700 points in the early trading session. This bounce back came after a heavy sell-off the previous day, aligning the local market with the positive momentum observed in global stock exchanges.
By 9:50 am, the benchmark index stood at 113,476.29, marking an increase of 731.28 points or 0.65% from its previous close. The surge was propelled by buying interest across several key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), refineries, and power generation firms. Stocks like HUBCO, PSO, SHELL, MARI, OGDC, PPL, HBL, MCB, MEBL, and NBP were among the notable gainers, all trading in the green, signaling a broad-based recovery.
Market analysts linked Monday’s sharp decline to a broader global sell-off, triggered by US President Donald Trump’s announcement of hefty import duties on Canada, Mexico, and China. However, the market sentiment shifted as Trump relaxed these tariffs on Mexico overnight, leading to a positive close in US equity markets and setting a recovery tone for global markets. Intermarket Securities, in their analysis, noted, “However, he relaxed it for Mexico overnight – hence global markets have recovered today (US equity market closed positively last night).”
They further projected that while the Pakistan market would likely rebound, it might remain range-bound in the near term due to a lack of new positive triggers and fresh liquidity. However, they highlighted positive macro news from Pakistan, including a Consumer Price Index (CPI) for January at a near 10-year low of 2.4%, and an improved goods trade deficit month-on-month. Additionally, Pakistan and Saudi Arabia had agreed on a deferred oil payment scheme worth $1.6 billion, which adds to the economic optimism.
Globally, financial markets responded variably to the shifting US trade policy. Hong Kong shares reached two-month highs with the Hang Seng Index up by 2.5%, buoyed by gains in electric vehicle stocks despite looming tariffs on Chinese goods. US equity futures saw a modest rise of 0.4%, and the dollar reversed its gains against the Mexican peso and the Canadian dollar following Trump’s decision to suspend imminent tariffs.
In other parts of the world, European equity futures also edged up by 0.2%, showing cautious optimism. Meanwhile, oil prices fluctuated, with Brent crude futures dipping to near a one-month low at $75.46 due to the mixed signals from the US trade policy. Cryptocurrency markets also saw some recovery with Bitcoin trading around $102,000 after dipping close to $91,000 the day before.
Australian shares advanced by 0.4%, and Japanese stocks rose by 1.7%, though these gains were not enough to offset the previous day’s losses as trade-war fears lingered. It’s notable that Chinese markets were closed for the Lunar New Year break, potentially affecting global market dynamics.
The recovery in the KSE-100 Index reflects not just local economic factors but also a broader global market sentiment influenced by US trade policies. With upcoming discussions between Trump and Chinese President Xi Jinping, markets are watching closely for any further policy shifts that could impact global trade and, by extension, local economies like Pakistan’s.
