Buying rally continued at the Pakistan Stock Exchange (PSX), breaking new ground on the back of encouraging economic data and sustained investor confidence, with the benchmark KSE-100 Index gaining over 900 points during the opening hours of trading on Wednesday.
At 10:15am, the benchmark index was hovering at 151,899.00, an increase of 923.52 points or 0.61%.
Buying interest was observed in key sectors including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including HUBCO, ARL, MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC and WAFI traded in the green.
“The rally is driven by improving macro stability and robust corporate earnings,” Waqas Ghani, Head of Research at JS Global, told media.
“Cyclical sectors are at the forefront, with cement stocks drawing interest on stronger dispatches and profitability. Banks have supported the index with resilient earnings despite lower interest rates, while auto stocks are also in the limelight on the back of improved sales,” he shared.
On Tuesday, the PSX carried its historic rally forward with the benchmark index settling at 150,975.48 points, marking a strong gain of 1,004 points or 0.67%.
Internationally, a global slide in long-dated bonds extended into Asia on Wednesday, while gold climbed to a new peak as concerns mounted over government debt and economic growth.
The 30-year Japanese government bond (JGB) yield hit an unprecedented 3.255%, following a run-up in similarly dated gilts and Treasuries overnight. Japan’s Nikkei gauge of shares opened lower, following declines on Wall Street after data showed a continued contraction in US manufacturing.
Attention turns to services data in Europe for indications of how countries are weathering the unpredictable tariff regime from US President Donald Trump and to key US labour data on Friday for signals on rate cuts by the Federal Reserve.
Trump on Tuesday said his administration will ask the Supreme Court for an expedited ruling on tariffs that an appeals court found illegal last week.
The court allowed for the tariffs to stay in place until October 14.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%, while Japan’s Nikkei slid 0.5%.
Australia’s S&P/ASX 200 index sank 0.9% after second-quarter gross domestic product data.
This is an intra-day update
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