Bullish momentum continued at the Pakistan Stock Exchange (PSX) amid improved investor sentiments, with the benchmark KSE-100 Index gaining nearly 1,800 points during the opening minutes of trading on Tuesday.
At 10:20am, the benchmark index was hovering at 168,015.96, an increase of 1,773.06 points or 1.07%.
Buying interest was observed in key sectors including automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, MCB and NBP, traded in the green.
Analysts attributed the positivity to reduced geopolitical noise and improved macroeconomic indicators.
Pakistan’s current account (C/A) posted a significant surplus of $110 million in September, a sharp contrast against $52 million deficit recorded in the same month last fiscal, data released on Monday by the State Bank of Pakistan (SBP) showed.
The surplus came on the back of a significant increase in remittance inflows during the month, which clocked in at $3.18 billion, reflecting an increase of 11% on a yearly basis.
On Monday, PSX opened the week on a resounding bullish note as investors responded positively to a landmark diplomatic breakthrough between Pakistan and Afghanistan, which significantly boosted market sentiment.
The KSE-100 Index surged by 2,436.69 points, or 1.49%, closing at 166,242.90 points.
Internationally, Asian stocks rose on Tuesday as the prospect of easing trade tensions between the world’s top two economies boosted risk sentiment, while the near-certainty of Sanae Takaichi becoming Japan’s next prime minister sent the Nikkei to a record high.
US President Donald Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping and downplayed risks of a clash over the issue of Taiwan.
Trade tensions between the US and China have weighed on the markets in recent weeks, with investor focus now on Trump’s planned meeting with Xi on the sidelines of an economic conference in South Korea next week.
The lingering hope that a resolution could be on the cards lifted investor sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan hit an over four-and-a-half-year high and was last up 0.94%.
China stocks rose 0.2% while Hong Kong’s Hang Seng was 1% higher in early trading.
Australian shares surged as investors snapped up rare earths and critical minerals stocks after the country signed a supply deal with the United States.
This is an intra-day update
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