Buying spree continued at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index crossed the 87,000 level for the first time to settle at a new record high on Wednesday.
At close, the benchmark index was at 87,194.53, an increase of 727.96 points or 0.84%. It hit a high of 87,309.22, which is now its record intra-day level.
The bullish momentum was witnessed on the back of heavy buying in index-heavy energy stocks, with shares of companies including HUBCO, KEL, PPL and OGDC, ATRL trading in the green.
Experts have attributed the run to anticipation of another reduction in the key policy rate amid expectation of lower inflation reading this month.
“The decline in secondary market yields, political stability, the successful Shanghai Cooperation Organisation (SCO) summit, and local mutual fund buying are primary reasons for this all-time high,” said Mohammed Sohail, CEO Topline Securities, in a note.
On Tuesday, the PSX had the then-record high level on the back of aggressive buying mainly by local investors coupled with institutional support. The KSE-100 index increased by 409.06 points or 0.48% to close at 86,466.58.
Globally, Asian equities diverged on Wednesday after another unremarkable day on Wall Street, where rising bond yields and comments from Federal Reserve officials dampened expectations for US interest rate cuts.
A global rally that has seen several markets hit multiple records – particularly in New York – appears to have run out of gas as traders assess the US central bank’s plans in the wake of forecast-topping economic data and ahead of a tight presidential election.
They are also keeping tabs on Beijing, hoping for more measures to reignite growth after a slew of stimulus over the past month, while geopolitical tensions helped push safe-haven gold to another peak.
Bets on another bumper 50-basis-point rate cut at the Fed’s next meeting have dwindled following a recent spate of data showing the world’s top economy in rude health and the labour markets resilient.
Several key members of the bank’s policy board have said that while they are in favour of further reductions, they did not want to go too quickly.
Meanwhile, the Pakistani rupee remained largely unchanged against the US dollar in the inter-bank market on Wednesday. At close, the currency settled at 277.73, a gain of Re0.01 against the greenback.
Volume on the all-share index decreased to 699.29 million from 722.21 million on Tuesday.
However, the value of shares rose to Rs26.82 billion from Rs25.02 billion in the previous session.
K-Electric Ltd was the volume leader with 207.63 million shares, followed by WorldCall Telecom with 42.92 million shares, and Pak Int.Bulk with 33.97 million shares.
Shares of 447 companies were traded on Wednesday, of which 214 registered an increase, 173 recorded a fall, while 60 remained unchanged.
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