KARACHI: After days of selling pressure, confidence returned to the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index rebounded.
The benchmark KSE-100 Index surged over 1,400 points during the early hours of trading on Wednesday.
By 9:50am, the KSE-100 was at 117,501.73, up 1,449.05 points or 1.25%.
Key sectors saw buying interest, including automobile assemblers, cement, chemicals, commercial banks, fertilizers, oil and gas exploration, OMCs, power generation, and refineries.
Major stocks such as NRL, PRL, HUBCO, PSO, SHEL, SSGC, MARI, OGDC, PPL, ENGRO, MCB, MEBL, and NBP were trading in the green.
Intermarket Securities noted that market sentiment remained positive as top risks had eased.
On Tuesday, the PSX closed lower after investors offloaded holdings. The KSE-100 Index dropped 202.44 points or 0.17%, ending at 116,052.68 points.
Global Market Overview
Internationally, Asian stocks were mostly lower on Wednesday. A strong US dollar kept the yen near six-month lows, as traders speculated that the Federal Reserve would slow rate cuts after stable US economic data.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.2%, while Japan’s Nikkei dropped 0.8%. On Wall Street, all three major indexes closed lower, with concerns about rising inflation.
Also Read: FinMin says 150,000 vacant posts abolished across ministries
China’s CSI300 Index slipped 0.3%, and Hong Kong’s Hang Seng Index fell 0.55%.
The yen was last trading at 157.98 per dollar, near Tuesday’s six-month low of 158.425. The yen lost more than 10% against the dollar last year and started 2025 on a weak note.
Investor Focus in 2025
Investors are closely watching shifting US rate expectations and the growing policy divergence between the US and other economies. With President-elect Donald Trump set to take office on January 20, there are concerns about potential tariffs.
The Federal Reserve had projected only two rate cuts for 2025 in December, down from an earlier forecast of four. Markets now expect the first rate cut in July, with 38 basis points of easing priced in for this year.
