PTBP Web Desk
The Pakistan Stock Exchange (PSX) experienced a significant turnaround on Thursday. The benchmark KSE-100 Index, which is the primary indicator of market performance at the PSX, rallied impressively, gaining over 1,400 points during intra-day trading. By 3pm, the index was recorded at 112,915.56, marking an increase of 1,428.20 points or 1.28% from its previous close.
The surge was driven by strong buying interest across various key sectors. Notably, automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries all contributed to the day’s positivity. Stocks from major corporations like HUBCO, NRL, PSO, SHEL, SNGP, OGDC, PPL, POL, MARI, MCB, and MEBL were among those trading in the green, reflecting widespread investor confidence.
Intermarket Securities, in their daily note, pointed out that major banks were set to commence announcing their annual results, starting with Bank Alfalah. This development is often seen as a bellwether for the financial health of the banking sector and can influence market sentiment broadly. Additionally, the note highlighted an upcoming milestone – the International Monetary Fund (IMF) review scheduled for the end of February, which could further solidify the market’s view on Pakistan’s macroeconomic stability.
The rebound comes on the heels of a bearish phase where the PSX had seen losses for three consecutive sessions. On Wednesday, the KSE-100 Index had closed down by 543 points at 111,487.36, primarily due to a lack of positive triggers to encourage buying.
Globally, the trading environment on Thursday was mixed, with many Asian markets thin due to Lunar New Year holidays. The US dollar remained stable following signals from the Federal Reserve about pausing policy easing, with Federal Reserve Chairman Jerome Powell indicating no urgent need to cut interest rates further.
The US market itself was influenced by a mix of corporate earnings outcomes from tech giants. Microsoft reported revenues that beat expectations, whereas Tesla disappointed with its profit margins for the fourth quarter. Meta Platforms forecasted revenue below market estimates, adding to the cautious mood among investors. The anticipation around Apple’s earnings later in the day also loomed large, given its significant impact on market indices.
In the backdrop, the policies of President Donald Trump, particularly his tariff decisions, continue to pose uncertainties for global trade and the Federal Reserve’s policies. With new tariffs potentially on the horizon for Canada, Mexico, and possibly China, international investors are keeping a close watch on how these developments might sway market directions.
The tech sector, especially following a debate on Chinese startup DeepSeek’s advancements in AI and its implications for US tech dominance, has been under scrutiny. This conversation led to a significant sell-off in global tech stocks earlier in the week, contributing to a cautious approach among investors.
Despite these international jitters, the PSX managed to close the day on a high note, showcasing resilience and investor optimism in the local market. This performance suggests a temporary decoupling from global trends, highlighting the unique dynamics at play within Pakistan’s financial markets.
As the PSX looks forward to the IMF review and the banking sector’s yearly performance announcements, market analysts and investors alike will be keenly observing these events for cues on future market movements.
