Investor sentiment at the Pakistan Stock Exchange (PSX) remained positive on Friday, as the benchmark KSE-100 Index gained over 750 points in the first half of the trading session. This surge came after concerns over a potential mini-budget eased, contributing to growing optimism among investors.
By 12pm on Friday, the KSE-100 Index was hovering at 94,968.36, up 776.47 points, or 0.82%. The index showed a robust upward movement as key sectors saw significant buying activity. Cement, commercial banks, power generation, and oil marketing companies (OMCs) were among the top performers.
Stocks of large companies such as HUBCO, KE, PSO, PPL, MEBL, and FAYSAL were also trading in the green, contributing to the overall market rally.
Economic Optimism Drives Market Upward
Experts attributed the market’s positive momentum to growing economic optimism. Recent reports suggested that the International Monetary Fund (IMF) had no major concerns about Pakistan’s progress in meeting its revenue collection targets. This news has helped reassure investors, boosting confidence in the market.
An IMF delegation, led by mission chief Nathan Porter, is currently in Pakistan for a staff visit. The visit aims to discuss recent developments and assess Pakistan’s performance under the Extended Fund Facility (EFF) program.
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Mini-Budget Concerns
Investor sentiment was further supported by comments from Pakistan’s Minister of State for Finance and Revenue, Ali Pervaiz Malik. On Thursday, he stated that it was too early to comment on whether a mini-budget would be implemented. His remarks helped calm fears that a mini-budget could be imminent, further boosting market confidence.
Historic Milestone for PSX
On Thursday, the PSX had achieved another significant milestone, reaching its highest-ever level with an aggressive buying spree. The benchmark KSE-100 Index surged by 836.47 points, or 0.90%, and crossed the 94,000 mark to close at a record 94,191.89 points. The rally was driven by strong participation from local investors, along with institutional support.
Global Market Trends
Globally, Asian markets had a mixed performance on Friday following statements from Federal Reserve Chairman Jerome Powell, who tempered expectations for interest rate cuts. Powell’s comments came amid growing concerns about the ongoing trade tensions between China and the United States, which have weighed on global equity markets.
This uncertainty caused a negative lead from Wall Street, impacting market performance in Asia. However, the U.S. dollar remained strong against its peers and gained ground against the yen after data showed a slowdown in Japan’s economic growth. This development could dampen expectations for further rate hikes by Japan’s central bank.
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