PSX opens higher as KSE-100 index gains over 500 points

Buying activity dominated trading at the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100 Index rising more than 500 points during the early session.

KARACHI: Buying activity dominated trading at the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100 Index rising more than 500 points during the early session.

At around 9:45am, the benchmark index was trading at 180,864.26 points, recording an increase of 553.05 points, or 0.31%, from the previous close.

The positive trend reflected renewed investor interest in several major sectors. Strong activity was witnessed in cement, commercial banking, fertiliser, oil marketing companies (OMCs) and power generation stocks.

Several index-heavy companies also contributed to the upward movement. HUBCO, Fauji Fertilizer Company (FFC), MCB Bank, National Bank of Pakistan (NBP) and United Bank Limited (UBL) were among the stocks trading in positive territory during the early hours.

The latest gains come after the stock market staged a recovery in the previous session. On Wednesday, the PSX rebounded as investors returned to buying after two consecutive sessions of profit-taking.

Market sentiment also improved toward the end of Wednesday’s trading session following reports regarding an extension of the US-Iran ceasefire, which helped ease some concerns among investors about geopolitical developments and their potential impact on regional markets.

The KSE-100 Index ultimately closed Wednesday’s session at 180,311.22 points.

Global markets provide positive cues

The positive momentum at the domestic bourse was also supported by a broadly upbeat trend in Asian equity markets.

Asian stocks advanced on Thursday after fresh US inflation data broadly matched market expectations. The figures reduced some expectations of an immediate tightening move by the US Federal Reserve and provided support to investor sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.97%, while South Korea’s benchmark market climbed sharply, gaining 4.4%. Japan’s Nikkei index also advanced 1.86%.

US stock futures remained relatively stable, with S&P 500 E-mini futures up 0.02% during the Asian trading session.

US inflation remains in focus

According to data released on Wednesday, US consumer prices increased by 0.1% in July, broadly matching economists’ expectations.

The modest increase in consumer prices has lowered expectations of an immediate interest-rate hike by the Federal Reserve. Market participants are closely monitoring inflation figures as they assess the central bank’s next policy move.

According to CME Group’s FedWatch tool, financial markets were pricing in around a 40% probability of a rate hike next month, down from approximately 54% a week earlier.

Oil prices remain near $80

Meanwhile, international oil prices remained close to the $80-per-barrel level, as diplomatic efforts between Washington and Tehran remained unresolved.

Developments in oil prices remain important for Pakistan’s economy and financial markets because changes in global crude prices can influence the country’s import bill, inflation outlook, exchange-rate pressures and corporate earnings.

Investors at the PSX are expected to closely monitor both domestic economic developments and international market cues as trading progresses on Thursday.