PSX: KSE-100 up nearly 200 points

The Pakistan Stock Exchange (PSX) saw a significant surge in its benchmark KSE-100 Index during the opening minutes of trading on Friday, with the index gaining nearly 200 points. By 9:50am, the index was trading at 177,500.38, up by 177.61 points or 0.10%. The buying interest was particularly strong in key sectors such as automobile assemblers, oil and gas exploration companies, OMCs, power generation, and refineries. Several index-heavy stocks like ARL, HUBCO, MARI, OGDC, PPL, PSO, HBL, and NBP traded in the green.

On Thursday, the PSX had been in a state of consolidation, with the index experiencing profit-taking in late sessions, which offset the early gains and resulted in a slight decline in the benchmark index. The KSE-100 Index closed at 177,322.78 points, down by 47.93 points, or 0.03%. Internationally, the stock markets were cautious after a technology rally driven by Nvidia, while currency and bond markets awaited comments from the world's most influential central banker on US interest rates.

Oil prices were expected to decline weekly as Iran and Oman had agreed to manage traffic in the Strait of Hormuz and share revenues, though the United States showed little interest in restarting direct talks with Tehran. Brent crude eased by 0.1% to $89.63 a barrel, but was set for a weekly drop of more than 5%. The MSCI's broadest index of Asia-Pacific shares outside Japan rose by 0.1%, while Japan's Nikkei increased by 0.5%.

Taiwanese shares gained 1.2% after Nvidia reported strong results overnight, sparking a near 9% jump and signaling that the AI spending boom was likely to continue for years. However, South Korea's KOSPI fell by 1%, and Hong Kong's Hang Seng declined by 0.3%. Futures for the S&P 500 and Nasdaq were down by 0.1%, while EURO STOXX 50 futures increased by 0.3%.

The Federal Reserve's Jackson Hole Symposium is the focus of attention, with chair Kevin Warsh expected to provide insights during the session. Three Fed officials have already voiced concerns over sticky inflation, but the new central bank chief has been hesitant to provide guidance on interest rate movements. Futures suggest a 35% probability of a rate hike at the Fed's meeting on September 16, and the market has already factored in the possibility of a move by December.