KSE-100 rebounds nearly 900 points as buying resumes
The KSE-100 rebounds on Friday morning, gaining nearly 900 points as buying returned to the Pakistan Stock Exchange after Thursday’s profit-taking.
The benchmark KSE-100 Index was trading at 150,104.19 points at 10am, up 868.93 points or 0.58%. Market activity showed renewed investor confidence, with strong buying interest recorded in automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, oil marketing firms, power generation companies and refineries. Index-heavy stocks such as Attock Refinery (ARL), Hub Power Company (HUBCO), Pakistan State Oil (PSO), Sui Northern Gas Pipelines (SNGPL), Sui Southern Gas Company (SSGC), Meezan Bank (MEBL), National Bank of Pakistan (NBP) and United Bank (UBL) traded firmly in the green.Stock Market Sheds 800 Points Amid Election and Debt Woes
The rebound followed a sharp correction on Thursday, when profit-taking erased early gains and dragged the benchmark index down by 1,355.74 points, or 0.9%, to settle at 149,235.26. The decline had interrupted a streak of record highs that lifted the KSE-100 above the 150,000-point mark earlier in the week.
Market watchers noted that Friday’s session reflected bargain hunting, as investors returned to sectors with strong fundamentals. Analysts said liquidity inflows from institutions and optimism over corporate earnings helped absorb Thursday’s selling pressure. The rally comes at a time when the PSX has been attracting attention from foreign portfolio investors, buoyed by expectations of policy continuity and relative macroeconomic stability.
Globally, equity markets in Asia showed cautious gains on Friday as investors awaited signals from U.S. Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium. Powell’s speech is expected to shed light on the central bank’s next policy move, particularly the likelihood of a September interest rate cut in response to signs of job market weakness.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.2%, extending its monthly rise to 1.6%. South Korea’s Kospi index outperformed, climbing 1%, while China’s CSI 300 index headed for a third straight day of gains, underpinned by policy support measures. Japan’s Nikkei 225 fluctuated between gains and losses before edging up 0.1%.
In U.S. markets, futures linked to the S&P 500 gained 0.1% after Wall Street’s main benchmark closed lower for five consecutive sessions, putting it on track for its steepest weekly decline this month. The correction reflects investor caution amid uncertainty over the Fed’s policy path.
Expectations for a September rate cut, which had surged earlier this month following weak U.S. payrolls data and subdued consumer price inflation, have moderated slightly. According to CME Group’s FedWatch tool, the probability of a September cut eased to 75% from 82.4% on Thursday after the release of minutes from the Fed’s July meeting.
Analysts say Powell’s remarks could be pivotal for both U.S. and emerging markets, including Pakistan. A softer Fed stance may support risk assets globally by easing capital outflow concerns, while a more cautious tone could dampen investor appetite.
For Pakistan, the KSE-100 Index’s sharp swings this week underscore both the strength of investor sentiment and the vulnerability to profit-taking at elevated levels. Market participants will continue to watch foreign inflows, corporate results, and monetary signals from major central banks to gauge the index’s direction in the coming sessions.
The KSE-100 Index, which crossed 150,000 points for the first time this week, remains a bellwether for investor confidence in Pakistan’s equity market. Friday’s recovery suggests resilience, though analysts caution that volatility may persist as global and domestic factors continue to shape sentiment.