Pakistan: Stocks extended gains on Thursday as investor sentiment improved on renewed expectations of de-escalation in Middle East tensions, even as global crude oil prices showed a mild rebound after a sharp decline in the previous session.
During intraday trading at the Pakistan Stock Exchange (PSX), the benchmark KSE-100 Index reached a high of 167,924.09 points, reflecting an increase of 3,092.67 points or 1.88% from the previous close. The index later slipped to an intraday low of 166,638.56 but remained firmly higher, gaining 1,807.14 points or 1.10% compared to the previous closing level of 164,831.42.
Market analysts attributed the rally to easing geopolitical concerns and declining oil prices earlier in the week. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, noted that diplomatic efforts to end the conflict had exerted downward pressure on oil markets, where prices had fallen by around 6% in the previous session. He said expectations of a possible end to hostilities and gradual normalization, including reopening of key shipping routes, helped boost investor confidence.
Positive momentum was also observed across Asian equity markets. Japan’s Nikkei index surged more than 3.5%, while South Korea’s Kospi rose 6.8% in morning trade, led by a 5.9% gain in Samsung Electronics. Other regional markets also advanced, with Taipei rising 3.6%, Sydney up 1.6%, and Singapore gaining 0.4%. Hong Kong, Shanghai, Bangkok, and Wellington posted gains, while Jakarta declined 1.5%.
Sentiment in global markets was further influenced by comments from US President Donald Trump, who said negotiations on a Middle East settlement were at a “borderline” stage between agreement and renewed conflict, reinforcing cautious optimism among investors.
In the energy market, crude oil prices edged higher after Wednesday’s steep losses. West Texas Intermediate crude rose 0.5% to $98.75 per barrel, while Brent crude increased 0.4% to $105.43 per barrel.
On the domestic economic front, Pakistan raised Rs688 billion in realised value through the auction of market treasury bills conducted on Wednesday. Yields increased across all tenors, with the one-month T-bill rising 86 basis points to 12.23%, the three-month yield increasing 41 basis points to 12.4904%, the six-month yield up 15 basis points to 12.4999%, and the 12-month yield rising 9 basis points to 12.59%.
Total bids amounted to Rs1.73 trillion against a target of Rs450 billion and maturities of Rs479 billion, reflecting strong participation in government debt instruments.
In the previous session, the KSE-100 Index had closed higher by 1,934.74 points, or 1.19%, at 164,831.42. The index had earlier touched an intraday high of 165,081.7 and a low of 162,895.74. The KSE-30 Index also gained 669.37 points, or 1.37%, closing at 49,356.83.