PSX Bounces Back with Significant Gains

Following a day of profit-taking, renewed buying activity propelled the Pakistan Stock Exchange (PSX) upward on Friday. The benchmark KSE-100 Index surged by over 1,100 points in the initial hours of trading.

As of 11:20 am, the KSE-100 Index stood at 150,340.77, reflecting an increase of 1,105.51 points, equivalent to a 0.74% rise.

Investor interest was particularly strong in key sectors, including automobile manufacturing, commercial banking, fertilizer, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Major stocks, such as ARL, HUBCO, PSO, SNGPL, SSGC, MEBL, NBP, and UBL, all traded positively.

On Thursday, the PSX experienced substantial selling pressure as profit-taking reversed earlier gains, causing the benchmark index to decline and conclude a period of record highs. The KSE-100 Index closed at 149,235.26 points, a decrease of 1,355.74 points or 0.9%.

Global Markets Await Powell’s Speech

Across international markets, Asian stocks saw modest gains in a cautious start on Friday. Investors were keenly awaiting a speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium.

Financial markets are hoping that Powell will offer insights into the possibility of a rate cut in September, particularly in light of recent indications of weakness in the job market and the near-term outlook for monetary policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan increased by 0.2%, bringing its gains to 1.6% for the month. South Korea’s Kospi index led the gains with a 1% increase, while China’s blue-chip CSI 300 Index was poised for its third consecutive day of gains.

The Nikkei 225 fluctuated between gains and losses, eventually rising by 0.1%.

S&P 500 futures experienced a 0.1% increase. The Wall Street cash gauge is currently on a five-day losing streak, potentially leading to its largest weekly decline of the month.

Following an unexpectedly weak payrolls report and consumer price data indicating limited upward pressure from tariffs earlier this month, traders had increased their expectations for a September rate cut.

However, these expectations were slightly tempered following the release of the Federal Reserve’s July meeting minutes. According to the CME Group’s FedWatch tool, traders are now pricing in a 75% probability of a rate cut in September, down from 82.4% on Thursday.

This information reflects an intra-day market update.