Stocks extended gains Thursday as stabilizing oil prices eased fears of worse supply shocks and investors shifted their attention to the upcoming corporate earnings season.
The Pakistan Stock Exchange (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 stood at 175,672.33, up 386.55 points, or 0.22%, showing that the benchmark index remained in positive territory during the session.
“Markets took a breather as oil prices stabilized after an initial rally, easing investors’ concerns over possible 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 boost activity in specific sectors,” 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 to the previous session’s close of 173,518.82.
Oil prices fell on Thursday after the United States completed its latest attacks on Iran, although hostilities in the Middle East kept energy markets nervous. Brent crude futures fell 0.5% to $84.50 a barrel, but remained up 11% for the week.
The latest tensions came after new US attacks on Iran and Iranian attacks on US bases in Kuwait and Jordan. The escalation has kept investors alert to risks related to energy flows through the Strait of Hormuz, a critical route for global oil and liquefied natural gas supplies.
Asian stocks weakened on Thursday as a sell-off in chipmakers overshadowed strong gains from Taiwan Semiconductor Manufacturing Co (TSMC), while bonds benefited from weaker U.S. 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 gained overnight as investors shifted out of semiconductors and into big tech stocks and banks after solid earnings from major lenders.
Analysts said weaker U.S. consumer and producer inflation readings had eased immediate concerns about a Fed rate hike, although renewed hostilities between the U.S. and Iran could still reignite inflation concerns if energy markets face further disruption.
