PSX soars: KSE-100 settles above 130,000 level

The record-breaking rally at the Pakistan Stock Exchange (PSX) continued on Wednesday, as the benchmark KSE-100 Index settled above the 130,000 mark for the first time in history.

Positive momentum persisted throughout the trading session, pushing the KSE-100 to an intra-day high of 130,545.94.

At close, the benchmark index settled at 130,344.03, an increase of 2,144.61 points or 1.67%.

Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, PSO, MARI, OGDC, PPL and POL traded in the green.

Experts noted that improved economic indicators, including a lowering inflation rate, are contributing to the bullish run.

“We expect a current account surplus in FY25, while the rupee has largely remained stable. Moreover, there is still room for further monetary easing by 1%,” Sana Tawfik, Head of Research at Arif Habib Limited, told Business Recorder.

Moreover, interest from both local and foreign investors has improved the liquidity position of the market, driving the positive trend, she said.

“Local funds buying” is driving the rally, Mohammed Sohail, CEO of Topline Securities, told Business Recorder.

On Tuesday, PSX sustained its bullish momentum, with the benchmark KSE-100 Index registering another record closing mainly attributed to the macroeconomic stability with easing inflation and strengthening rupee, besides hopes of monetary easing in the coming weeks.

The benchmark KSE-100 Index surged by a remarkable 2,572.11 points or 2.05% to settle at an all-time high of 128,199.43 points.

Internationally, Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump’s July 9 deadline for tariffs.

Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan’s Nikkei fell 0.78%, dragged by tech stocks.

Tech-heavy Taiwan stocks and South Korea’s Kospi Index also fell after US tech firms were hit hard following a strong rally in June.

Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next.

Meanwhile, the Pakistani rupee posted marginal decline against the US dollar, depreciating 0.07% in the interbank market on Wednesday. At close, the currency settled at 283.95, a loss of Re0.19 against the previous close.

Volume on the all-share index decreased to 1,026.12 million from 1,032.76 million recorded in the previous close.

The value of shares increased to Rs49.29 billion from Rs44.01 billion in the previous session.

WorldCall Telecom was the volume leader with 89.87 million shares, followed by B.O.Punjab with 89.53 million shares, and Kohinoor Spining with 46.35 million shares.

Shares of 473 companies were traded on Wednesday, of which 256 registered an increase, 192 recorded a fall, while 25 remained unchanged.