The Pakistan Stock Exchange staged a sharp recovery on Wednesday morning, with investors returning to the market after a heavy selloff in the previous session pushed share prices to attractive levels.
The benchmark KSE-100 Index was trading at 176,701.38 points by 10:02am, up 3,182.57 points, while trading activity remained healthy with 40.47 million shares changing hands.
Earlier, at 9:38am, the index had already climbed 2,674.09 points, or 1.54 percent, to 176,192.90, signalling broad-based buying from the opening bell.
Gains were spread across several major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing firms, power generation and refineries. Heavyweight stocks such as ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, MEBL, NBP and UBL all traded higher, providing strong support to the benchmark index.
The rebound came a day after the PSX suffered one of its steepest declines in recent years. On Tuesday, the KSE-100 Index tumbled 6,408.23 points, or 3.56 percent, to close at 173,518.82, as investors rushed to reduce exposure amid rising tensions in the Middle East. Fears that the conflict between the United States and Iran could disrupt global oil supplies had triggered widespread selling across the market.
Global sentiment, however, improved overnight, helping regional equities recover.
Asian markets moved higher after softer than expected US inflation data eased concerns about further interest rate hikes. Oil prices also paused after the United States dropped plans to impose shipping charges through the Strait of Hormuz, reducing worries over higher transport costs.
South Korea’s KOSPI jumped around 6 percent in early trade, while Japan’s Nikkei gained 0.4 percent. The broader MSCI Asia-Pacific index outside Japan advanced 1.7 percent, reflecting stronger investor confidence across the region.
Meanwhile, US Treasury yields fell after inflation data came in below expectations, strengthening hopes that the Federal Reserve could take a less aggressive approach to monetary policy.
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