PSX recovers nearly 600 points as buying returns a…

Buying activity returned to the Pakistan Stock Exchange (PSX) on Wednesday, with the benchmark KSE-100 Index rebounding strongly in early trading after suffering a sharp decline in the previous session.

By 9:40am, the KSE-100 Index had climbed 592.08 points, or 0.33%, to 180,438.76 points, reflecting renewed investor interest in major listed companies.

The recovery was broad-based, with buying activity reported across several important sectors, including automobile assemblers, cement manufacturers, commercial banks, fertiliser companies, oil and gas exploration firms, oil marketing companies (OMCs) and power generation companies.

Several index-heavy stocks also contributed to the early gains. HUBCO, MARI, POL, PPL, HBL, MCB, MEBL, NBP and UBL were among the prominent stocks trading in positive territory.

Investors reassess geopolitical risks

The improved sentiment at the local bourse came as Pakistan signalled that diplomatic efforts between the United States and Iran could potentially lead to an arrangement aimed at reducing tensions.

Defence Minister Khawaja Asif told Bloomberg News on Tuesday that developments over the previous few days suggested that the two sides were moving closer to a possible understanding.

According to the minister, the situation appeared to be developing in favour of a peace arrangement or agreement, raising hopes that easing geopolitical tensions could provide some relief to global energy markets.

The prospect of reduced tensions is particularly important for Pakistan, where movements in international crude prices can have a significant impact on import costs, inflation expectations, the current account and overall investor sentiment.

PSX suffers sharp decline in previous session

The Wednesday rebound followed a difficult session at the PSX on Tuesday, when investors remained cautious amid geopolitical uncertainty and a rise in international oil prices.

The KSE-100 Index ended Tuesday’s trading at 179,846.68 points, losing 1,463.60 points, or 0.81%.

The decline reflected renewed selling pressure as market participants assessed the possible economic consequences of heightened tensions and uncertainty surrounding the outlook for a US-Iran agreement.

Wednesday’s early recovery suggests that some investors were willing to return to equities as concerns over a possible escalation appeared to ease, although market sentiment remained sensitive to developments in global markets.

Global markets remain focused on inflation data

International markets were also trading cautiously on Wednesday, with oil and gold prices moving higher while Asian equities posted modest gains.

Investors were closely watching the latest US consumer price index (CPI) data for indications about the future direction of US monetary policy. The inflation figures are expected to provide important clues about the Federal Reserve’s interest-rate outlook and the timing of any potential rate changes.

Higher-than-expected inflation could reinforce expectations of tighter monetary policy for longer, while softer price pressures could strengthen the case for eventual rate reductions.

In currency markets, the Japanese yen remained largely stable against the US dollar after giving back much of its recent gains following rare intervention in foreign-exchange markets by Japan and the United States.

Geopolitical developments also continued to weigh on market sentiment. Reports of separate attacks involving shipping and the Iran-aligned Houthi movement added to concerns surrounding maritime security and energy supplies, while a North Korean missile launch further unsettled investors in Asia.

Oil and gold prices rise

Crude oil prices advanced amid continued concerns about supply disruptions and geopolitical risks.

US crude futures increased 0.89% to $83.94 per barrel, while Brent crude rose 0.78% to $89.60 per barrel.

Gold, another traditional safe-haven asset, also gained ground. Spot gold increased 0.46% to $4,387.03 per ounce as investors continued to monitor geopolitical developments and the direction of US monetary policy.

In Asian equities, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%. Japan’s Nikkei index remained broadly flat after markets reopened following a holiday.

Similar Posts

  • | |

    Sharmila Faruqui warns of growing PPP-PML-N tensio…

    Pakistan Peoples Party (PPP) lawmaker Sharmila Faruqui has warned that relations between the PPP and Pakistan Muslim League-Nawaz (PML-N) have become increasingly tense following the Azad Jammu and Kashmir (AJK) elections. Speaking to journalists outside Parliament, Faruqui said the situation between the two coalition partners was currently strained. She added that it was difficult to predict how the political situation would develop in the coming days. Her remarks came amid discussions over the political relationship between the PPP and PML-N and growing differences on several issues. Faruqui said the issue of creating new administrative units should be handled through Parliament. She opposed turning the matter into a debate primarily conducted through television channels. She said any proposal to create new administrative units should be formally brought before the National Assembly and the Senate. According to her, Parliament is the appropriate forum for discussing matters that could have major constitutional and administrative implications. The PPP leader stressed that such issues require detailed debate and consultation. She said lawmakers should have the opportunity to examine the proposals and discuss their possible political, administrative and constitutional consequences. Faruqui also highlighted the impact of the AJK elections on relations between the PPP and PML-N. She said the situation between the two parties had become “very tense” after the elections. She warned that the political developments could take different turns. Her comments indicate that differences between the coalition partners may become more prominent if the issues are not addressed through dialogue. The PPP and PML-N have remained key political partners at the federal level. However, differences between the two parties have surfaced on various political and administrative matters. Faruqui’s comments come at a time when the question of new administrative units has also generated political debate. The proposal has attracted attention because any major change in the administrative structure could have wider political and constitutional implications. The PPP lawmaker maintained that such a sensitive issue should not be settled through media discussions. She called for the matter to be brought before both houses of Parliament for a proper debate. Her statement also reflects the growing political uncertainty following the AJK elections, with questions emerging over the future course of relations between the PPP and PML-N.

  • | | |

    Cabinet clears Rs1.8bn bureaucrats’ allowanc…

    The federal cabinet has approved a new Rs1.8 billion special allowance for senior bureaucrats despite continuing austerity measures and limiting the salary increase for government employees to 7% in the 2026-27 federal budget. The decision was taken during the cabinet meeting that approved the federal budget in June. The new benefit is the second special allowance granted to top civil servants in the past four years. It comes at a time when the government is urging public institutions to reduce spending and maintain fiscal discipline. The newly approved incentive has been named the All Pakistan Services Provincial Governments’ Cadre Posts’ Parity Allowance. It will be effective from July 1, 2026. The approved allocation of Rs1.8 billion indicates that the allowance could be close to 100% of an officer’s basic salary, although the government has yet to announce the final rate and eligibility criteria. Officials have not publicly explained why the allowance was introduced or whether any formal study was conducted before approving it. Government departments also did not clarify the exact structure of the benefit. According to officials familiar with the matter, the allowance is intended to reduce differences in salaries and benefits between officers serving in the federal government and those working in provincial governments. Authorities believe many senior officers prefer provincial postings because they receive better financial incentives and additional privileges. The government also wants to encourage members of the Pakistan Administrative Service and the Police Service of Pakistan to continue serving in federal institutions by offering competitive compensation. However, the decision has drawn criticism from observers who argue that the move increases inequality within the public sector. While senior bureaucrats continue to receive additional financial benefits, the majority of government employees have received only a modest salary increase despite rising inflation and increasing living costs. Analysts believe the decision could encourage other civil service groups to demand similar allowances, putting additional pressure on the government’s finances and complicating future pay reforms. The cabinet also approved a major revision to the 150% executive allowance introduced in 2022. Instead of calculating the allowance on the 2017 basic pay scale, it will now be based on officers’ current basic salary as of June 30, 2026. This change will substantially increase payments for officers serving in grades 17 to 22 across key federal institutions. At the same meeting, the government extended austerity measures for another fiscal year. The restrictions include a ban on purchasing new vehicles and non-essential equipment, creating new posts, unnecessary foreign visits, and other non-priority expenditures. Government meetings and official events will continue to follow a simple catering policy.

  • Cambodia Flies Over 250 Drones Across Thai Border, Violating Ceasefire

    BANGKOK – Cambodia has violated the ceasefire agreement reached just two days ago by flying more than 250 drones over multiple Thai border areas, the Royal Thai Army announced on Monday. Army spokesman Major General Winthai Suvaree stated that the incursions occurred on Sunday night and represent a serious provocation. Thailand–Cambodia Ceasefire Takes Effect, to […]

  • | |

    Bilawal urges Mirpur voters to support PPP in AJK …

    Pakistan Peoples Party Chairman Bilawal Bhutto Zardari has urged the people of Mirpur to actively participate in the first phase of the Azad Jammu and Kashmir elections. Bilawal issued a video message along with his sister, Aseefa Bhutto Zardari. He addressed voters as polling continued across Mirpur Division. Bilawal asked Kashmiris to come out of their homes and cast their votes. He said the people should use their democratic right to decide their future. He urged voters to support PPP candidates by voting for the party’s arrow symbol. Bilawal said the PPP believes that boycotting elections has never produced successful results. He therefore called on voters to take part in the electoral process instead of staying away from polling stations. The PPP chairman said voters should participate if they want their rights to be protected. He specifically mentioned the right to governance and ownership. He also called for the establishment of a truth and reconciliation commission for Azad Kashmir. Bilawal said the PPP wanted the people of Kashmir to have a strong voice in decisions affecting their future. He again urged voters to support the party and ensure their participation in the elections. Meanwhile, polling is continuing in the first phase of the AJK Legislative Assembly elections. Voting began at 8am and is scheduled to continue until 5pm. The first phase covers 13 constituencies in Mirpur Division. The constituencies are located in the districts of Mirpur, Kotli and Bhimber. Polling has started at most stations. However, voting could not begin at polling stations 36 and 37 in Aghar Colony, Kotli, because voters had not arrived. Officials are monitoring the polling process across the division. Authorities have also urged citizens to exercise their right to vote peacefully. Mirpur Commissioner Raja Tahir Mumtaz and Deputy Inspector General Kamran Ali visited wards 16 and 17 of LA-3. They reviewed the polling arrangements and assessed the situation at the polling stations. Speaking to journalists, the commissioner said polling had been proceeding peacefully across all three districts since the morning. He appealed to voters to leave their homes without fear and participate in the elections. The commissioner assured citizens that the administration had made security and other necessary arrangements. He said voters would be provided with a peaceful environment to cast their ballots.

  • | |

    Japan’s 7.1 quake injures 50, cuts power to 40,0…

    A powerful 7.1-magnitude earthquake jolted Japan’s southern Kumamoto prefecture on Tuesday, leaving at least 50 people injured, disrupting transport and cutting electricity to around 40,000 homes as authorities warned residents to remain alert for aftershocks. The earthquake struck Kyushu, Japan’s southwestern main island, at a depth of about 10 kilometres, according to the Japan Meteorological Agency (JMA). The tremor reached the highest level of 7 on Japan’s seismic intensity scale in parts of Kumamoto, underlining the strength of the shaking. The powerful tremor damaged roads, bridges and buildings, while transport services across the affected region were thrown into disruption. Rail services, including high-speed trains, were suspended, while Kumamoto airport also temporarily closed its runway. The earthquake also triggered an emergency response across Kyushu. Authorities urged more than 150,000 residents to evacuate as officials assessed damage and monitored the situation. Reports said a fire and explosion occurred at a shopping mall, while a goods train was derailed during the chaos. For residents, the immediate concern was not only the first powerful jolt but the possibility of more shaking. Japanese authorities issued warnings over potential aftershocks and landslides, urging people in affected areas to remain cautious and follow official instructions. A tsunami warning was also issued after the earthquake, with authorities warning of waves of up to one metre along parts of the Ariake and Yatsushiro seas. The warning was later lifted after no significant tsunami activity was observed. Despite the widespread disruption, there were no reports of irregularities at nuclear power plants in the affected region, providing some relief as authorities continued their assessment. The earthquake has also drawn attention because Kumamoto has experienced devastating seismic activity before. The region was badly hit by a major earthquake sequence in 2016, which caused extensive destruction and hundreds of deaths. Japan is among the world’s most earthquake-prone countries, making disaster preparedness a central part of everyday life. Yet the latest tremor again demonstrated how quickly a powerful earthquake can disrupt communities, transport networks and essential services. With rescue and assessment operations continuing, authorities are now focused on helping those injured, restoring electricity and transport, and preparing residents for potentially dangerous aftershocks.

  • | | |

    Lab report finds 176 substandard samples of oil, g…

    ISLAMABAD: A laboratory assessment has found that 176 out of 491 samples of packaged edible oil, ghee and milk failed to meet national quality standards. According to a statement issued by the Ministry of Planning, a total of 491 samples of packaged cooking oil, ghee and milk products were tested. Of these, 315 samples were found to comply with national standards, while 176 were declared substandard. The ministry said approximately 36% of the tested samples failed to meet the required quality standards. The assessment showed significant variations across different products. Of the 204 samples of vanaspati ghee tested, 98 were found to be below the required standards. Similarly, 40 out of 146 samples of blended cooking oil failed the quality assessment, while 26 of 104 samples of packaged liquid milk were declared substandard. The report also found quality concerns in milk powder, refined palm oil and refined canola oil. Eight of the 18 milk powder samples failed to meet national standards, while three of four refined palm oil samples were found to be substandard. In the case of refined canola oil, one out of 13 tested samples did not meet the required standards. The findings have highlighted concerns over the quality of commonly consumed food products and the need for stronger monitoring and enforcement to ensure that packaged edible oils, ghee and dairy products available in the market comply with national quality requirements.

Leave a Reply

Your email address will not be published. Required fields are marked *