KARACHI – The Pakistan Stock Exchange experienced a robust recovery on Thursday, with the benchmark KSE-100 index climbing more than 800 points during the early trading session. The surge lifted the index to 175,237 points, signaling a sharp reversal of sentiment after a significant downturn in the previous session.
The bullish opening followed a volatile Wednesday, where the market shed 1,703 points to close at 174,429 points. Traders quickly pivoted to bargain-hunting, capitalizing on lower valuations as confidence returned to the trading floor.
Regional Markets Rally on AI Spending Optimism
The positive momentum in Karachi mirrored a broader rally across Asian markets. Investors were buoyed by aggressive capital expenditure plans from U.S. technology giants, which are expected to funnel billions into artificial intelligence infrastructure and benefit major chipmakers in the region.
Alphabet and Tesla reported earnings that underscored a relentless commitment to AI investment, with the search giant specifically raising its capital spending forecast for the year. The news injected fresh optimism into the semiconductor supply chain.
South Korea’s KOSPI index led the regional charge, soaring more than 3% on the back of strong performances by SK Hynix and Samsung Electronics. Japan’s Nikkei also posted gains, climbing 0.7% as the tech-led rally spread.
Oil Prices Climb Amid Middle East Tensions
While equity markets celebrated the tech spending spree, escalating geopolitical tensions in the Middle East pushed oil prices to six-week highs. The complex interplay of positive corporate signals and rising geopolitical risk created a mixed macro backdrop, though equity investors largely focused on the growth narrative.
The recovery in Pakistani equities suggests that local market participants are currently prioritizing domestic valuation opportunities and the positive global lead from the tech sector over external geopolitical headwinds.
