KARACHI: Hopes of easing tensions in the Middle East following a sweeping midterm eleetion defeat for Donald Trump’s Republican Party helped lift investor sentiment. The Pakistan Stock Exchange (PSX) staged a spectacular rally on Wednesday, propelling the benchmark KSE-100 index above 172,000 and crossing four resistance levels in one go.
With oil prices falling and inflationary pressures easing, investors stepped up buying at attractive valuations, anticipating a pickup in economic activity.
Topline Securities Ltd said the PSX extended its bullish momentum for the third consecutive session, building on the previoussession’s strong recovery amid improving investor confidence and renewed institutional participation.
The index surged 3,994.62 points, or 2.38 per cent, to close at 172,013.48 points, decisively crossing the psychological 170,000-point milestone and reflecting strong buying interestacross the market.
Positive momentum was driven mainly by optimism about potential progress in US-Iran diplomatic negotiations, relative stability in international oil prices, and renewed accumulation in heavyweight stocks.
Buying activity remained broad-based, with key sectors, includingcommercial banks, fertilisers, cement and energy, drawing significant investor interest. Overall, the session reflected improved market sentiment and a strengthening risk appetite among investors.
United Bank, Fauji Fertiliser, Hub Power, Lucky Cement and National Bank emerged asthe leading positive contributors, collectively adding approximately 1,215 points and providing substantial support to the market’s overall performance.
Investor participation turned robust, with trading volume surging 62.67pc to 841 million shares and traded value rising 70.94pc to Rs35.3 billion.Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market opened on a positive note amid a sharp decline in international oil prices, following the Democrats’ sweeping victory in the US midterm elections.
WTI crude fell below $95 per barrel from the previous session’s high of $98, while Brent declined to $102.50 per barrel from $107.34 per barrel.
This development improved investor sentiment, triggering broad-based buying and helping the benchmark index reclaim the 172,000 level for the first time since Sept 23.
Mr Trump said he had no immediate plans to launch military strikes against Iran after the Democrats’ victory in the mid-term elections, further easing near-term geopolitical concerns.
Analysts expect the market to sustain its bullish momentum as geopolitical concerns ease and oil prices decline. However, profit-taking at higher levels remains possible, while investors continue to monitor global developments.