Pakistan Stock Exchange hits historic high amid global tensions

The Pakistan Stock Exchange (PSX) achieved a milestone on Friday, with its benchmark KSE-100 Index surging by 620 points to close near 71,000, marking its highest level in history. The market initially reacted negatively to reports of Israel's attack on Iran but quickly rebounded, reaching an intra-day peak of 70,968.98 before settling at 70,909.90, up by 0.88%. Notable buying activity was observed in sectors such as automobile assemblers, chemical, oil and gas exploration companies, and OMCs, with key stocks like OGDC, PPL, PSO, and SHEL performing well.

Analysts attribute the market's resilience to robust corporate earnings by local listed companies in the current quarter. Additionally, positive developments related to Reko Diq have bolstered investor confidence. However, concerns loom over potential escalation of tensions between Israel and Iran, which could impact market stability.

Meanwhile, globally, Japan's Nikkei share average experienced a significant decline of over 3% due to losses in chip-related stocks and heightened Middle East turmoil. Traders are exercising caution following reports of increased hostilities in the region.

On Thursday, the PSX benchmark index closed marginally lower, while the Pakistani rupee saw a slight appreciation against the US dollar in the inter-bank market on Friday. Trading volume on the all-share index increased slightly, with shares of 370 companies being traded, out of which 200 saw gains, 149 recorded losses, and 21 remained unchanged.

The PSX's record-breaking performance amidst global uncertainties underscores the resilience of Pakistan's stock market. While positive earnings and developments have driven investor optimism, ongoing geopolitical tensions pose a potential risk to market stability. As investors navigate through these challenges, the market's ability to weather external pressures will be closely monitored in the coming sessions.