The Pakistan Stock Exchange (PSX) rebounded strongly on Thursday with the benchmark KSE-100 Index surging by nearly 1,800 points during early morning trade, recovering a portion of the steep losses it suffered a day earlier.
At 9:35am, the KSE-100 was recorded at 111,791.53 points, up by 1,782.51 points or 1.62 per cent, reflecting across-the-board buying amid cautious optimism in the market.
The upward trajectory came following hopes of de-escalation in the ongoing military tensions between Pakistan and India. The positive sentiment marked a turnaround from Wednesday’s bloodbath, where the index had plunged over 3,500 points, closing at 110,009.02.
Key sectors including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies (OMCs), power generation and distribution, and refineries led the rally. Major index contributors such as HUBCO, ARL, MARI, OGDC, POL, PSO, SSGC, NBP, and UBL were all seen trading in the green.
The recovery in equities coincided with a lull in cross-border hostilities following the most intense military exchanges between India and Pakistan in over two decades. The shelling and missile attacks, primarily focused on the Line of Control and key Pakistani cities including Bahawalpur, Kotli, and Muzaffarabad, left at least 26 people dead and 45 injured, according to the Inter-Services Public Relations (ISPR).
The military’s spokesperson stated that Indian missiles also targeted strategic infrastructure such as the Neelum-Jhelum Hydropower Project. In response, the Pakistan Air Force reportedly shot down five Indian fighter jets, including three Rafale aircraft, a MiG-21, and an SU-30.
Globally, markets were also buoyant. Asian shares advanced, following remarks from US President Donald Trump hinting at an imminent trade agreement, reportedly with the United Kingdom. His comments lifted investor sentiment ahead of crucial trade talks between the US and China scheduled for Saturday.
S&P 500 futures turned positive, up by 0.5pc, while Nasdaq futures rose 0.7pc. In Europe, the pan-European STOXX 600 index gained 0.7pc and London’s FTSE futures were up 0.5pc.
Meanwhile, investors are also monitoring monetary policy decisions expected from the Bank of England, Sweden, and Norway later in the day. The Bank of England is anticipated to announce a modest rate cut, while no major changes are expected from the Nordic central banks.
