PSX: Buying continues, KSE-100 up nearly 700 points

The Pakistan Stock Exchange (PSX) witnessed a surge in buying activity, resulting in the benchmark KSE-100 Index climbing nearly 700 points during the early trading hours of Friday. By 9:35am, the index was recorded at 169,740.21, marking a gain of 697.02 points, or 0.41%. Investors exhibited interest in various sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration firms, OMCs, and power generation.

Among index-heavy stocks, LUCK, MCB, MEBL, NBP, UBL, MARI, OGDC, POL, PPL, and PSO traded in the positive zone. On Thursday, the PSX experienced a robust rebound as global oil prices declined and signs of a potential de-escalation in the US-Iran conflict bolstered investor confidence, prompting fresh investment across key sectors.

The KSE-100 Index had surged by 1,021.40 points, or 0.61%, to close at 169,043.20 points. Internationally, Asian stocks also saw an upward trend, while the dollar maintained stability amid global policymakers' efforts to curb inflation. Ongoing concerns over the Middle East war and oil prices above $100 per barrel fueled inflation apprehensions worldwide.

As monetary policy response dominated discussions this week, Brent crude futures dipped by 1% to $103.77 a barrel despite prospects of Middle East oil supply through alternative channels, despite ongoing concerns about Saudi Arabia and Yemen's Houthis. Traders also considered a Wall Street rally, which was propelled by down-trodden tech stocks.

Bond prices stabilized after another severe sell-off this week, pushing the 10-year US Treasury beyond 5% to its highest level since 2007, previously sitting at 4.936%. In Asia, MSCI's Asia-Pacific index outside Japan increased by 0.55%. Japan's Nikkei increased by 0.9%, while South Korea's KOSPI surged by 2%.