The Pakistan Stock Exchange (PSX) continued its bullish trend on Wednesday as the KSE-100 Index surged past the 87,000 level for the first time in history, closing at 87,194.53 points.
This represents a significant increase of 727.96 points or 0.84 per cent. The index reached an all-time intra-day high of 87,309.22 points during the trading session.
Key drivers behind the rally
The major contribution to this index rise trend is the buying and selling of energy stocks, with companies like HUBCO, KEL, PPL, and OGDC leading the charge. Experts pointed to multiple factors driving the surge, including anticipation of a further reduction in the key policy rate amid lower inflation expectations.
Local and global factors in play
With increased buying from local investors and institutional support lifting the index. Just a day earlier, the KSE-100 closed at what was then a record high of 86,466.58 points, driven by strong investor confidence.
Globally, Asian markets showed mixed performance as rising bond yields and comments from Federal Reserve officials dampened expectations for rate cuts in the US. With geopolitical tensions and economic uncertainty looming, safe-haven assets like gold have also seen significant gains.
Outlook for the future
While the bullish trend at PSX reflects strong local sentiment, global factors, including the US Federal Reserve’s monetary policy and economic data, remain crucial to future market performance.
Investors are closely watching the next moves by central banks, particularly the Federal Reserve, to gauge the potential for further gains.
Separately, The Pakistani rupee (PKR) remained stable against the US Dollar (USD) throughout today’s session in the interbank market, opening trade at 278 and closing with a slight appreciation.
According to the State Bank of Pakistan, the rupee closed in green, gained one paisa, and finished the day at Rs277.73.
During today’s interbank trading, the PKR appreciates against several major global currencies. It appreciated by 61 paisas against the Australian Dollar (AUD), Rs1.06 against the British Pound (GBP), and Rs1.44 against the Euro (EUR). On the fiscal year-to-date basis, the rupee has appreciated by 0.22 per cent.
