Karachi, June 21, 2025 —
The Pakistan Stock Exchange (PSX) opened with renewed buying momentum on Friday, as the benchmark KSE-100 Index surged by over 600 points, recovering from a sharp drop the previous day. As of 9:35am, the index was hovering at 120,609.85, gaining 607.26 points or 0.51% in early trade.
Market participants showed optimism across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, and refineries. Index-heavy stocks such as PRL, HUBCO, PSO, SNGPL, MARI, OGDC, POL, PPL, NBP, MEBL, and UBL all traded in the green, providing support to the broader index.
Thursday’s Market Recap: A Downbeat Session
The rebound comes after a downward session on Thursday, where the KSE-100 Index lost 463.34 points or 0.38% to close at 120,002.59. Despite selective gains in individual stocks, investor sentiment remained cautious, driven by both local uncertainties and global geopolitical risks.
Global Headwinds: Escalating Conflict and Market Jitters
Asian equity markets were mixed on Friday, as investor sentiment continued to be dampened by fears of escalating tensions in the Middle East. Overnight reports confirmed that Israel bombed nuclear targets in Iran, triggering retaliatory missile and drone attacks from Iran.
The intensifying Israel-Iran conflict, now entering its second week, has injected heightened volatility into global markets. Adding to the tension, the White House stated that President Donald Trump will make a decision in the next two weeks on whether the United States will enter the conflict. The move faces backlash from parts of his base, wary of new foreign military engagements.
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Oil Prices and Commodities: Tracking the Impact
Brent crude was down 2% to $77.22 per barrel on Friday, but still on track for a 4% weekly gain, following a 12% jump the previous week. The volatility in oil prices continues to impact energy and exploration sector stocks, with broader implications for fuel-importing economies like Pakistan.
Global Markets Overview: Mixed Signals
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U.S. stock futures were under pressure, with Nasdaq and S&P 500 futures both down 0.3% in Asian trade.
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MSCI’s Asia-Pacific index outside Japan was up 0.1%, though still set for a 1% weekly loss.
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Japan’s Nikkei fell by 0.2%, reflecting risk aversion.
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China’s blue chips rose by 0.3%, while Hong Kong’s Hang Seng gained 0.5% after the central bank held benchmark lending rates steady.
In the currency markets, the U.S. dollar slipped 0.2% to 145.17 yen, as Japan’s core inflation hit a two-year high, fueling speculation about a potential rate hike by the Bank of Japan, although most analysts don’t expect it before December.
Outlook: Geopolitics and Economic Data to Guide PSX
With the PSX showing resilience in the face of regional and global headwinds, analysts believe that the short-term direction will remain closely tied to geopolitical developments, oil prices, and upcoming macroeconomic data releases, including inflation and current account figures.
Investors are advised to maintain a cautious stance while selectively accumulating fundamentally strong stocks, particularly in export-driven sectors, energy, and commercial banks, which continue to show strength amid volatile sessions.