PSX extends buying rally as KSE-100 closes higher by 254 points

Bullish momentum continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing the day higher by 254 points.

The KSE-100 Index started the session positive, hitting an intra-day high of 114,029.76, following by some selling that trimmed some of the gains.

At close, the benchmark index settled at 113,342.44, up by 253.96 points or 0.22%.

“This positive momentum was primarily fuelled by better-than-expected corporate results, which bolstered investor confidence and encouraged fresh buying across multiple sectors,” brokerage house Topline Securities said in its post-market report.

The market’s upward movement was largely supported by FFC, BAHL, MTL, SYS, and KOHC, which collectively contributed 433 points to the index. However, UBL, LUCK, HUBC, HBL, PPL, and OGDC weighed on the market, subtracting a combined 619 points, according to the report.

On Tuesday, positive momentum returned at the PSX with the benchmark KSE-100 Index gaining over 1,345 points to settle at 113,088.48.

In a key development, Pakistan’s current account posted a deficit of $420 million in January 2025, a significant increase of 4% when compared with the deficit of $404 million in the same month of the previous year, data released by the State Bank of Pakistan (SBP) on Tuesday showed.

Meanwhile, Foreign Direct Investment (FDI) in Pakistan maintained its upward trajectory, posting an impressive 56% growth during the first seven months of the current fiscal year (FY25).

Internationally, Asian stocks wavered on Wednesday after the S&P 500 and European shares ended at record highs. This was in response to US President Donald Trump’s latest tariff threats on auto, semiconductor and pharmaceutical imports.

Since Trump’s inauguration four weeks ago, Trump has imposed a 10% tariff on all imports from China, on top of existing levies. He has also announced, and delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada.

Trump told reporters on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would start at “25% or higher, and it will go very substantially higher over a year.” He intends to impose similar tariffs on autos as early as April 2.

Market reaction to Trump’s threats was muted as investors increasingly see them as bargaining tools. However, the US dollar was on the front foot as geopolitical concerns, including tense Russia-Ukraine negotiations, boosted safe-haven flows.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.29% after touching a three-month high earlier in the session.

Chinese tech stocks have been on a tear recently as the emergence of AI startup DeepSeek and a meeting between Xi Jinping and business leaders in the sector lifted sentiment.

Meanwhile, the Pakistani rupee lowered against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday. At close, the rupee settled at 279.47, a loss of Re0.10 against the greenback.

Volume on the all-share index increased to 667.72 million from 545.01 million recorded in the previous close.

The value of shares rose to Rs25.73 billion from Rs20.74 billion in the previous session.

K-Electric Ltd was the volume leader with 180.89 million shares, followed by B.O.Punjab with 53.76 million shares, and Fauji Cement with 38.11 million shares.

Shares of 451 companies were traded on Wednesday, of which 236 registered an increase, 146 recorded a fall, while 69 remained unchanged.