Stocks extended gains on Thursday as stabilizing oil prices eased fears of the worst supply shocks and investors shifted focus to the upcoming corporate earnings season.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index hit an intraday high of 178,367.77, up 3,081.99 points, or 1.76%, from the previous close of 175,285.78. Its intraday low was at 175,672.33, still up 386.55 points, or 0.22%, showing the benchmark remained in positive territory during the session.
“Markets took a breather as oil prices stabilized after an initial surge, easing investor concerns over potential worst-case supply shocks, similar to those during past US-Iran tensions,” said Huzaifa Riaz, director at Mayari Securities (Pvt) Limited.
“On the domestic front, attention is shifting to the upcoming earnings season, which is expected to drive sector-specific activity,” he added.
The positive start followed a strong recovery in the previous session. The Pakistan Stock Exchange closed higher on Wednesday as the KSE-100 index gained 1,766.97 points, or 1.02%, to settle at 175,285.78 compared with the previous session’s close of 173,518.82.
Oil prices fell on Thursday after the United States ended its latest strikes on Iran, although hostilities in the Middle East kept energy markets on edge. Brent crude futures were last down 0.5% at $84.50 a barrel. barrel, but remained up 11% for the week.
The latest tensions followed renewed US attacks on Iran and Iranian attacks targeting US bases in Kuwait and Jordan. The escalation has kept investors alert to risks surrounding energy flows through the Strait of Hormuz, a critical route for global oil and liquid natural gas supplies.
Asian shares weakened on Thursday as a sell-off in chipmakers overshadowed strong earnings from Taiwan Semiconductor Manufacturing Co (TSMC), while bonds benefited from softer US inflation data that eased fears of an imminent Federal Reserve rate hike.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1%, while South Korea’s KOSPI came under pressure from losses in Samsung and SK hynix. Japan’s Nikkei also fell, while Hong Kong bucked the regional trend.
Wall Street rose overnight as investors rotated out of semiconductors and into major technology stocks and banks after robust earnings from big lenders.
Analysts said softer US consumer and producer inflation readings had eased immediate concerns about a Fed rate hike, although renewed hostilities between the US and Iran could still reignite inflation worries if energy markets face further disruptions.
