The Pakistan Stock Exchange (PSX) experienced a robust trading session on Thursday, with the benchmark KSE-100 index gaining over 650 points. By 3:05 pm, the index was at 81,808.87, reflecting an increase of 653.27 points or 0.80%. During the day, the index reached an intra-day high of 81,909.94, showcasing the positive momentum in the market.
The rally was broad-based, with significant buying activity witnessed in crucial sectors such as automobile assemblers, cement, chemicals, oil and gas exploration companies, and oil marketing companies (OMCs). Notable index-heavy stocks, including Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Shell Pakistan (SHEL), Sui Northern Gas Pipelines Limited (SNGPL), and Habib Bank Limited (HBL), traded positively, contributing to the index’s upward movement.
A key development contributing to the positive sentiment was Moody’s Ratings’ recent announcement. On Tuesday, Moody’s indicated that the new International Monetary Fund (IMF) program would enhance Pakistan’s funding prospects. However, the rating agency cautioned that Islamabad’s ability to sustain reform implementation would be crucial to unlocking financing over the three-year duration of the program. This announcement followed a significant gain on Monday when the KSE-100 index surged by over 1,200 points, closing above the 81,000 mark. Investors reacted positively to the staff-level agreement between Pakistan and the IMF, reflecting optimism about the country’s economic prospects.
It’s important to note that the stock market was closed on Tuesday and Wednesday due to Muharram holidays, which could have also contributed to the concentrated trading activity observed on Thursday.
On the global front, Asian equities experienced a decline on Thursday, led by a drop in chip stocks. Investors were concerned about escalating trade tensions between the US and China. The yen surged to a six-week high, attributed to suspected interventions by Tokyo the previous week. The US dollar remained near its weakest point in four months against a basket of currencies. Comments from Federal Reserve officials supported the case for a rate cut in September, which kept gold prices near record highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.57%, with tech-heavy South Korean shares down nearly 1%. In China, stocks also slipped as investors awaited policy news from a key leadership gathering in Beijing. The Shanghai Composite index was down 0.4%, and the blue-chip CSI300 index dropped by 0.5%.
