The Pakistan Stock Exchange (PSX) extended its bullish momentum on Wednesday, with the benchmark KSE-100 Index crossing the 180,000-point threshold during intraday trading as investors returned to buying despite renewed geopolitical concerns in the Middle East.
The benchmark index recovered from early losses of more than 600 points to climb to an intraday high of 180,769 points, gaining approximately 1,433 points from the previous session’s close. At around 2:20pm, it was trading at 180,343.12 points, up 1,007.88 points, or 0.56%.
Market Rebounds After Early Selling Pressure
Trading began on a negative note as renewed attacks on commercial shipping in the Strait of Hormuz raised concerns about regional security and potential disruptions to global energy supplies.
The initial selling pressure pushed the benchmark index down by more than 600 points during the opening minutes. However, investors gradually returned to the market, triggering a recovery that lifted the KSE-100 above the psychologically important 180,000-point level.
Buying activity was visible across several sectors, including banking, energy, technology, chemicals, automobile parts, refineries and oil and gas marketing companies.
Strong Rally in Previous Session Supports Sentiment
Wednesday’s recovery followed a strong performance on Tuesday, when the KSE-100 surged 5,448.56 points, or 3.13%, to close at 179,335.24 points.
The rally was supported by broad-based buying, improved investor confidence, strong overseas remittance inflows and declining international oil prices.
The previous session’s gains came as US President Donald Trump made remarks suggesting progress towards reducing tensions with Iran, raising hopes of a possible diplomatic breakthrough.
The sharp increase in the benchmark index encouraged further investor participation, helping the market recover from Wednesday’s initial losses.
PSX Rebounds After Long Weekend as KSE-100 Surges 4,654 Points
Banking and Energy Stocks Attract Buying
Several major sectors contributed to Wednesday’s recovery, with commercial banks, oil and gas exploration companies and oil marketing companies attracting investor interest.
Stocks including SSGC, PPL, OGDC, MCB, MEBL, NBP and UBL were among those trading in positive territory during the session.
The recovery reflected investors’ willingness to take advantage of market opportunities despite uncertainty surrounding regional developments and international energy supplies.
Global Markets and Oil Prices Remain in Focus
International developments continued to influence investor sentiment as financial markets assessed the possibility of easing tensions in the Middle East.
Oil prices remained close to their recent two-month lows on Wednesday, although renewed attacks on shipping in the Strait of Hormuz continued to raise concerns about supply disruptions.
Brent crude futures were trading around $91.68 per barrel, while US West Texas Intermediate crude stood near $85.98 during the reported trading period.
Investors are also monitoring international economic indicators, including US inflation figures and developments in global financial markets, which could influence expectations about interest rates.
The KSE-100’s move above 180,000 points marks another significant development in the market’s recovery. However, continued volatility in global oil prices and geopolitical developments are likely to remain important factors shaping the PSX’s direction.
Source: The Express Tribune, Business Recorder, Profit by Pakistan Today
