The record-breaking rally at the Pakistan Stock Exchange (PSX) continued on Wednesday, as the benchmark KSE-100 Index crossed the coveted 130,000 mark, gaining nearly 1,900 points during intra-day trading.
At 1pm, the benchmark index was hovering at 130,066.19 level, an increase of 1,866.77 points or 1.46%.
Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, PSO, MARI, OGDC, PPL and POL traded in the green.
Experts noted that improved economic indicators, including a lowering inflation rate, are contributing to the bullish run.
“Local funds buying” is driving the rally, Mohammed Sohail, CEO of Topline Securities, told media.
On Tuesday, PSX sustained its bullish momentum, with the benchmark KSE-100 Index registering another record closing mainly attributed to the macroeconomic stability with easing inflation and strengthening rupee, besides hopes of monetary easing in the coming weeks.
The benchmark KSE-100 Index surged by a remarkable 2,572.11 points or 2.05% to settle at an all-time high of 128,199.43 points.
Internationally, Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump’s July 9 deadline for tariffs.
Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan’s Nikkei fell 0.78%, dragged by tech stocks.
Tech-heavy Taiwan stocks and South Korea’s Kospi Index also fell after US tech firms were hit hard following a strong rally in June.
Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next.
This is an intra-day update
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