Stocks extended gains Thursday as stabilizing oil prices eased fears of worse supply shocks and investors focused on 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 percent, from the previous close of 175,285.78. Its intraday low stood at 175,672.33, still up 386.55 points, or 0.22 percent, showing that the benchmark index remained in positive territory during the session.
“Markets took a breather as oil prices stabilized after an initial rise, easing investor concerns over possible more severe supply shocks, similar to past tensions between the United States and Iran,” said Huzaifa Riaz, director of Mayari Securities (Pvt) Limited.
“Domestically, the focus is now on the upcoming earnings season, which is expected to boost sectoral activity,” he added.
This positive start follows a strong recovery during the previous session. The Pakistan Stock Exchange closed higher on Wednesday as the KSE-100 index gained 1,766.97 points, or 1.02 per cent, to settle at 175,285.78, compared to the previous session’s close of 173,518.82.
Oil prices fell on Thursday after the United States completed its latest strikes against Iran, even as hostilities in the Middle East kept energy markets tense. Brent crude futures fell 0.5% to $84.50 a barrel, but remained up 11% for the week.
The latest tensions follow new US attacks on Iran and Iranian strikes targeting US bases in Kuwait and Jordan. The escalation has kept investors alert to risks related to energy flows through the Strait of Hormuz, a key route for global supplies of oil and liquefied natural gas.
Asian stocks weakened on Thursday as chipmaker sell-offs overshadowed strong profits from Taiwan Semiconductor Manufacturing Co (TSMC), while bonds benefited from weaker 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 was pressured by losses at Samsung and SK hynix. Japan’s Nikkei also fell, while Hong Kong bucked the regional trend.
Wall Street gained overnight as investors turned away from semiconductors and toward big tech stocks and banks after strong earnings from major lenders.
Analysts said weak U.S. consumer and producer inflation figures eased immediate concerns about a Fed rate hike, although renewed hostilities between the United States and Iran could further reignite inflation concerns if energy markets face further disruption.
