The Pakistan Stock Exchange (PSX) continued with its winning run as the benchmark KSE-100 index settled above the 80,000 level for the first time in history on Wednesday.
Bullish momentum persisted throughout the trading session. At close, the benchmark index settled at 80,233.67 level, an increase of 680.79 points or 0.86%.
Buying was witnessed in key sectors including cement, chemical, commercial banks, oil and gas exploration companies, OMCs, and refinery.
Index-heavy stocks including HBL, MCB, NBP, OGDC, PPL, PSO, SHEL, SNGPL, SSGC and PRL traded in the green.
The PSX benchmark index has rallied more than 10% since the budget for FY25 was presented on June 12, led by optimism on getting an International Monetary Fund (IMF) bailout package to bolster the struggling South Asian country’s economy.
In a key development, the government said on Tuesday that after conclusion of an agreement with the International Monetary Fund (IMF) this month or next month, a comprehensive reforms agenda would be placed before the nation to increase the tax-to-GDP ratio to 14% as well as increase in export and investment rate.
On Tuesday, bullish momentum had also persisted at the PSX driven by optimism over a new IMF deal as the benchmark KSE-100 settled at a new record high of 79,552.89, an increase of 728.55 points or 0.92%.
Globally, Asian stocks rose on Wednesday as comments from Fed Chair Jerome Powell reinforced expectations that US rate cuts were not far off, while the yen remained pinned near levels last seen in 1986, keeping traders wary of Japanese intervention.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.26% higher, while Japan’s Nikkei rose 0.49%, stalking the record high touched in March.
The US is back on a “disinflationary path”, Powell said on Tuesday, although he cautioned that policymakers need more data before they can consider cutting interest rates.
Powell’s comments sent U.S Treasury yields 4.3 basis points lower overnight, with the yield on the 10-year note steady at 4.433% in Asian hours on Wednesday, keeping the dollar subdued.
Investors were also weighing data showing a tight US labour market.
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