The buying rally persisted at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index rose by more than 1,600 points in the first half of the trading session on Friday.
At 12pm, the benchmark index was hovering at 115,662.87, an increase of 1,625.08 points or 1.43%.
“Market may draw optimism from the government being able to pass legislation on electronic crimes in parliament. However talks between PTI and government have seemingly broken down,” said Intermarket Securities in a note on Friday.
The brokerage house added that market participants are eyeing a 100 basis points cut in the upcoming Monetary Policy Committee (MPC) meeting.
Buying was witnessed in key sectors including automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies, OMCs, power generation and refinery sectors. Index-heavy stocks including HUBCO, PSO, SHEL, SNGP, MARI, OGDC, PPL, HBL, MEBL and NBP traded in the green.
On Thursday, positivity returned to the PSX with the benchmark KSE-100 Index closing with a gain of nearly 600 points at 114,037.79.
Global shares rose on Friday buoyed by the prospect of lower US interest rates and a US-China trade deal following comments from President Donald Trump, while the yen steadied ahead of a widely expected hike from the Bank of Japan.
In a sign of policies to come, Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wants to lower global oil prices, interest rates and taxes, and warned of tariffs on exports to the United States.
The comments moved markets, with the S&P 500 hitting a record high and the dollar on the defensive as investors remain cautious about Trump’s next moves on trade and tariffs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% boosted by Chinese stocks after Trump said his recent conversation with President Xi Jinping was friendly, adding he thought he could reach a trade deal with China.
Those comments sent China’s CSI300 blue-chip index 0.6% and Hong Kong’s Hang Seng index 1.7% higher. The Australian and New Zealand dollars, as well as the yuan, rose on signs of a softer stance on tariffs from Trump.
With no new details on Trump’s tariff plans, the uncertainty has weighed on bond prices. Treasury yields have been on the rise as bond investors brace for eventual tariffs that may stoke inflation.
This is an intra-day update
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