Investor confidence returned to the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100 Index posting a substantial gain of over 900 points during intra-day trading. By 3:15 PM, the KSE-100 was seen trading at 116,931.85, marking a rise of 911.75 points or 0.79% compared to the previous day’s close.
This positive momentum came as a relief to the market after Wednesday’s downturn, when the index lost 755.40 points, or 0.65%, amid broader uncertainty in regional and global markets. Thursday’s upward movement reflects a renewed wave of buying, driven by both local and international developments that have improved investor sentiment.
One of the major catalysts for Thursday’s market rebound was the announcement that Kuwait has extended its oil credit facility to Pakistan for an additional two years. This development was confirmed by Kuwait’s Ambassador to Pakistan during a meeting with Federal Minister for Petroleum, Ali Pervaiz Malik, held in Islamabad. According to an official statement from the Petroleum Division, the extension is expected to ease Pakistan’s oil import financing pressures and support its balance of payments, providing relief to key economic sectors and instilling a greater sense of economic stability.
Banking stocks also contributed to the market’s upward momentum, with United Bank Limited (UBL) announcing a strong earnings report for Q1 2025. In a notice to the PSX, UBL reported a consolidated profit-after-tax (PAT) of Rs36.11 billion for the quarter ending March 31, 2025—more than double the Rs16.14 billion recorded in the same quarter of 2024, reflecting an impressive 124% year-on-year growth. The bank’s earnings per share (EPS) also increased significantly, reaching Rs29.34 compared to Rs13.05 in the corresponding period last year. This robust performance from one of the country’s largest commercial banks further reinforced investor confidence across the financial and banking sectors.
While local markets showed optimism, global financial conditions remained mixed. Asian stocks traded cautiously on Thursday, reflecting the ripple effects of comments made by U.S. Federal Reserve Chair Jerome Powell. Powell warned of the dual threats of slowing economic growth and rising inflation, largely fueled by ongoing trade tensions and tariff policies. His remarks led to a dip in U.S. Treasury yields and supported a continued rally in gold prices, which hit another record high in early trading.
Technology shares remained in focus globally after a turbulent session on Wednesday, triggered by cautionary outlooks from semiconductor giants like Nvidia and ASML. Investors awaited earnings results from Taiwan’s TSMC, a bellwether for the tech hardware supply chain. In early Asia trading, Taiwan’s stock index was down 0.5%, while Japan’s Nikkei gained 0.7% amid ongoing U.S.-Japan trade talks. Meanwhile, the South Korean market inched up by 0.4%.
Despite the uncertainty overseas, the Pakistani equity market’s resilience, buoyed by positive domestic developments and strong corporate earnings, provided a much-needed break from recent bearish trends. Analysts suggest that if global market volatility stabilizes and local economic indicators continue to improve, the PSX could maintain its upward trajectory in the near term.
The strong performance of the PSX on Thursday not only signals renewed investor interest but also highlights how strategic bilateral agreements and strong corporate fundamentals can help buffer domestic markets against international headwinds.