Stocks extended gains on Thursday as stabilising oil prices eased fears of worst-case supply shocks and investors shifted focus to the upcoming corporate earnings season.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched 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, still up 386.55 points, or 0.22%, showing that the benchmark remained in positive territory during the session.
“Markets took a breather as oil prices stabilised after an initial spike, 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 turned lower on Thursday after the United States completed its latest strikes on Iran, though hostilities in the Middle East kept energy markets on edge. Brent crude futures were last down 0.5% at $84.50 a barrel, but remained up 11% for the week.
The latest tensions followed renewed US attacks on Iran and Iranian strikes targeting US bases in Kuwait and Jordan. The escalation has kept investors alert to risks around energy flows through the Strait of Hormuz, a critical route for global oil and liquefied 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 reduced fears of an imminent Federal Reserve rate hike.
MSCI’s broadest index of Asia-Pacific shares outside Japan slid 1%, while South Korea’s KOSPI came under pressure from losses in Samsung and SK hynix. Japan’s Nikkei also declined, while Hong Kong bucked the regional trend.
Wall Street gained overnight as investors rotated out of semiconductors and into large technology stocks and banks after robust earnings from major lenders.
Analysts said softer US consumer and producer inflation readings had eased immediate concerns over a Fed rate hike, though renewed US-Iran hostilities could still revive inflation worries if energy markets face further disruption.
2026-07-16 12:23:00
