Investor confidence returned to the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 Index rebounded sharply, gaining over 1,100 points during early trading.
By 9:40 AM, the index had climbed to 121,629.44, marking an increase of 1,163.51 points or 0.97%. The recovery follows a steep decline the previous day, when bearish sentiment led to a loss of over 1,500 points, closing Wednesday’s session at 120,465.93.
The uptick in domestic equities comes amid a broader downturn in global financial markets. Asian stock exchanges struggled on Thursday, with Japan’s Nikkei 225 falling 0.8% due to a strengthening yen, which negatively impacted exporters. Taiwan’s benchmark index slipped 0.9%, while Hong Kong’s Hang Seng lost 0.8%.
US markets were closed for a national holiday, but S&P 500 futures dipped 0.4%, reflecting ongoing caution among investors.
In commodities, Brent crude edged down to $76.32 per barrel, though it remains close to a 4.5-month high. Currency markets saw the Japanese yen rise 0.2% to 144.92 against the dollar, while the US dollar strengthened further, buoyed by its safe-haven appeal.
In a significant diplomatic development, former US President Donald Trump hosted Pakistan’s Chief of Army Staff, Field Marshal Syed Asim Munir, at the White House for a private meeting—marking the first time a sitting US president has met a foreign military chief without any senior civilian officials present.
The unprecedented meeting is being seen in Islamabad as a diplomatic coup for Pakistan, especially amid heightened engagement between Indian officials and US Vice President JD Vance.
On the economic front, the US Federal Reserve held interest rates steady on Wednesday but hinted at possible rate cuts later in the year. The Fed also adjusted its economic outlook to reflect concerns over inflationary pressure stemming from Trump’s proposed tariff policies, as global markets continue to navigate geopolitical and financial uncertainties.
