The Pakistan Stock Exchange (PSX) continued its bullish trend on Tuesday as the benchmark KSE-100 Index surged past the 91,000 level during intra-day trading. By 1:20 pm, the KSE-100 was trading at 91,334.46, gaining 1,138.95 points or 1.26%.
Investors poured capital into index-heavy sectors, with significant buying activity seen in cement and banking stocks, fueling the ongoing bullish trend in the market. Key stocks such as DG Khan Cement (DGKC), Maple Leaf Cement (MLCF), National Bank of Pakistan (NBP), Meezan Bank (MEBL), and Sui Northern Gas Pipelines Limited (SNGPL) traded in the green, reflecting strong investor confidence in these sectors.
Record-Breaking Momentum Continues
The PSX has been on a record-breaking trajectory in recent weeks. This rise is driven by investor optimism over a potential interest rate cut in the upcoming monetary policy announcement, combined with strong corporate earnings across sectors. The buying momentum reflects confidence that the central bank may ease interest rates, which could stimulate further economic growth and improve corporate profitability.
Monday’s Close at Record High
On Monday, the PSX opened with strong buying momentum, driving the KSE-100 index to record intra-day highs before profit-taking pared gains. The benchmark index closed at a new high of 90,195.52 points, posting a net gain of 201.55 points or 0.22%. The consistent gains have solidified PSX’s position as one of the top-performing stock markets in the region, with strong local and foreign participation.
Mixed Performance in Asian Markets
Asian markets showed mixed results on Tuesday amid investor caution ahead of major tech earnings reports in the US, including Google parent Alphabet. Market sentiment in Asia remained volatile as investors awaited earnings data from top tech companies, which could set the tone for global markets in the coming days.
The Nikkei index in Japan rebounded after a tentative start, building on Monday’s gains. Meanwhile, the dollar hovered near a three-month high as investors awaited the JOLTS job openings report, a key employment indicator that could provide clues about the Federal Reserve’s policy direction.
US Election Adds Uncertainty
The upcoming US presidential election has added a layer of uncertainty to global markets, with the race entering its final stretch. Opinion polls remain close, but some financial markets and betting platforms show a slight lean towards a victory for Republican Donald Trump over Democrat Kamala Harris. The tight race has increased market volatility, with investors carefully monitoring election-related developments for potential impacts on global trade and economic policies.
Crude Oil Shows Slight Rebound
In the commodities market, crude oil prices ticked up slightly on Tuesday after a sharp drop on Monday. This recovery followed signals that the Middle East conflict would not expand further. Israel, in a retaliatory strike over the weekend, avoided targeting oil and nuclear facilities in Iran, easing fears of a disruption in global oil supply.
The recent events in both domestic and international markets have highlighted PSX’s resilience amid global volatility. The upward momentum at the PSX reflects strong local investor confidence, driven by economic recovery hopes and anticipation of favorable policy measures. With the KSE-100 crossing the 91,000 mark, analysts are optimistic that the index could reach even higher levels, depending on upcoming corporate earnings reports and policy decisions.
As the market rally continues, investors will keep a close watch on both domestic monetary policy developments and global economic indicators, which could influence trading sentiment in the days ahead.
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