PSX rebounds as KSE-100 gains nearly 700 points 

The Pakistan Stock Exchange (PSX) witnessed a recovery on Thursday as investors returned to the market, helping the benchmark KSE-100 Index post strong gains during intraday trading.

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a recovery on Thursday as investors returned to the market, helping the benchmark KSE-100 Index post strong gains during intraday trading.

By 1:15pm, the benchmark index had climbed 675.86 points, or 0.4%, to reach 170,866.50 points, reversing part of the losses recorded in the previous session. The positive momentum was supported by broad-based buying across several heavyweight sectors, reflecting improved investor sentiment despite lingering economic and geopolitical concerns.

Market participants actively accumulated shares in automobile assemblers, cement manufacturers, commercial banks, fertilizer companies, oil and gas exploration firms, oil marketing companies (OMCs), and power generation stocks. Major index contributors trading in positive territory included Mari Petroleum, Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Hub Power Company (HUBCO), MCB Bank, Meezan Bank (MEBL), and National Bank of Pakistan (NBP).

Analysts attributed the market’s rebound to selective buying in fundamentally strong stocks after a sharp decline in the previous trading session. Investors also remained focused on upcoming fiscal developments, particularly the federal budget for the next financial year.

The market’s recovery comes a day after Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed that Pakistan’s federal budget for fiscal year 2026-27 will be presented on June 10. The announcement followed reports suggesting that the budget presentation could be delayed from its originally expected date of June 5 due to ongoing discussions with the International Monetary Fund (IMF) over key fiscal measures and revenue targets.

The timing of the budget remains a major point of interest for investors, as market participants await policy decisions related to taxation, government spending, and economic reforms that could influence corporate profitability and overall market performance.

On Wednesday, the PSX had ended in negative territory as cautious investor sentiment dominated trading. The benchmark KSE-100 Index lost 831.13 points, or 0.49%, closing at 170,190.64 points. The decline was largely driven by concerns over escalating tensions in the Middle East and the lack of significant progress in diplomatic engagement between the United States and Iran.

Global markets also remained under pressure on Thursday as geopolitical uncertainties continued to weigh on investor confidence. Asian equities broadly moved lower after renewed hostilities involving the United States and Iran heightened concerns about regional stability.

MSCI’s broad index of Asia-Pacific shares outside Japan fell 1.5%, while S&P 500 futures declined 0.5%. Japan’s Nikkei 225 dropped 1.9%, and South Korean stocks slid as much as 2.6% after reopening from a market holiday.

Wall Street also closed lower overnight, with the S&P 500 shedding 0.7% as investors reacted to rising geopolitical risks and higher energy prices. Oil markets had previously surged around 2% amid fears of supply disruptions linked to tensions in the Middle East.

Despite stronger-than-expected economic data from the United States, including an improvement in the ISM services sector index for May, investor focus remained firmly on geopolitical developments. Economists noted that increased business activity was partly driven by companies accelerating purchases and rebuilding inventories amid concerns about potential supply shortages and rising costs.

Meanwhile, oil prices eased during Thursday’s trading session. Brent crude futures fell 1.3% to $96.59 per barrel after reports that Israel and Lebanon had agreed to implement a ceasefire arrangement. The agreement is reportedly linked to a halt in hostilities involving the Iran-backed Hezbollah movement and the withdrawal of its operatives from southern Lebanon.

The easing in oil prices provided some relief to financial markets, although investors remain cautious as the situation in the Middle East continues to evolve and could influence global energy markets and risk sentiment in the days ahead.