The Pakistan Stock Exchange (PSX) rebounded on Thursday after a sharp decline in the previous session. By afternoon, the benchmark KSE-100 Index had gained 877.04 points, or 0.5%, to reach 175,653.63.

The market closed at 174,776.59 on Wednesday after losing 1,690 points, or 0.96%. Investors had reacted to renewed US-Iran fighting around the Strait of Hormuz and a sharp increase in global oil prices.

By midday Thursday, the KSE-100 Index traded between 175,149.23 and 175,796.24. Trading volume stood at around 116 million shares, while the value of traded shares approached Rs7.55 billion.

Record Eurobond Deal Boosts Market Sentiment

Investor confidence improved after Pakistan announced a record $3 billion Eurobond transaction.

The dual-tranche deal attracted nearly $6 billion in orders, almost twice the amount offered. Pakistan issued a $1.75 billion 5.5-year bond with a 7.5% coupon.

Iran Strikes US Bases in Gulf as Strait of Hormuz Tensions Escalate

Additionally, the government issued a $1.25 billion 10-year bond carrying a 7.9% coupon.

Officials described the transaction as Pakistan’s largest single international bond issuance. Furthermore, they viewed the strong demand as evidence of improving investor confidence following recent credit-rating upgrades.

The successful transaction also strengthened sentiment at the stock market. As a result, investors increased buying across several major sectors.

Buying Spreads Across Major Sectors

Buying activity was visible across automobile assemblers, cement companies and commercial banks.

Meanwhile, fertiliser firms, oil and gas exploration companies, oil marketing firms and power generators also attracted investor interest.

Several index-heavy stocks traded in positive territory. These included HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, MEBL and UBL.

The broader recovery helped the market regain some of the ground lost during Wednesday’s sell-off.

Geopolitical Risks Remain a Concern

Despite Thursday’s rebound, investors remained cautious about regional developments.

Renewed US-Iran hostilities continue to create uncertainty for global energy markets. In particular, concerns surrounding the Strait of Hormuz have kept oil prices volatile.

Higher energy costs could also increase pressure on Pakistan’s import bill and external account. Therefore, investors are likely to closely monitor developments in the Middle East.

For now, however, the strong Eurobond response and buying across major sectors have provided support to the PSX.

Trading continued through the afternoon, with the final market direction depending on late-session flows and any fresh geopolitical developments.