PSX ends slightly lower after early rally as late‑session selling erases gains

The KSE‑100 index surged more than 1,200 points in the opening minutes of Thursday’s session before reversing course after midday, ultimately closing down 47.93 points (0.03%) at 177,322.77. The decline reflected a late‑session sell‑off that offset an initial rally fueled by falling oil prices and optimism that ongoing talks between Iran and Qatar could reopen the Strait of Hormuz and ease supply disruptions.

Trading data on the Pakistan Stock Exchange (PSX) website showed the benchmark index climbing over 1,200 points early in the day, but it began to lose momentum after noon and finished the session in negative territory. The previous close had been 177,370.71 points.

The PSX was closed on Wednesday in observance of Eid Milad‑un‑Nabi.

On Tuesday, the market posted modest gains as strength in banking and cement shares outweighed selective profit‑taking in energy stocks. The KSE‑100 rose 404.02 points (0.23%) to close at 177,370.71 points.

Earlier in the week, Moody’s Investors Service upgraded Pakistan’s sovereign credit rating by one notch to B3 from Caa1, maintaining a stable outlook. The agency cited expectations that improvements in governance would help sustain recent gains in Pakistan’s external position and strengthen fiscal metrics.

Moody’s noted that Pakistan’s external vulnerability has eased since its previous rating action in August 2025, with foreign‑exchange reserves rising amid continued macro‑economic stabilisation. Lower domestic financing costs and an improved fiscal stance were also said to have reinforced the country’s debt affordability.

In its weekly market review, Arif Habib Limited (AHL) indicated that the PSX is likely to remain sensitive to geopolitical developments, while the ongoing earnings season could provide support to overall market performance.

Regional equity markets showed mixed results on Thursday. Asian shares rose after Nvidia’s earnings beat estimates, lifting tech hardware makers and reviving investor confidence, while South Korea’s KOSPI added 1% following a Bank of Korea rate hike. European and U.S. markets edged higher, with the S&P 500 closing flat after the personal consumption expenditures (PCE) price index rose 0.2% in July.

Oil futures declined, with Brent crude down $1.07 (1.2%) at $86.77 a barrel and U.S. West Texas Intermediate falling $1.13 (1.4%) to $81.10.

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