Buying observed at PSX, KSE-100 up nearly 500 points in early trade
- Benchmark index was hovering at 178,970.18
The Pakistan Stock Exchange's KSE-100 Index gained nearly 500 points on Tuesday, recovering from Monday's profit-taking, amidst mixed international market performance and rising Fed rate hike expectations.
- Pakistan Stock Exchange's KSE-100 Index gains.
- Global stock market performance and oil prices.
- Federal Reserve's potential aggressive rate hikes.
Positive sentiments were observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 500 points during the opening minutes of trading on Tuesday.
At 9:45am, the benchmark index was hovering at 178,970.18, up by 498.32 points or 0.28%.
Buying was observed in key sectors, including cement, commercial banks, oil and gas exploration companies, OMCs, and power generation. Index-heavy stocks, including HUBCO, OGDC, POL, PPL, PSO, HBL, MCB and UBL, traded in the green.
On Monday, the PSX ended lower as investors resorted to profit-taking after the market’s strong rally in recent sessions. The benchmark KSE-100 Index declined by 450.89 points, or 0.25%, to close at 178,471.87 points.
Internationally, Asian stocks mostly eased and oil prices regained strength early on Tuesday after the US waived sanctions on Iran, while traders grappled with rising expectations the Federal Reserve may take more aggressive action to tackle inflation later this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%, while S&P 500 e-mini futures slipped 0.2%.
The Nikkei 225 was off 0.6%, retracing some losses after data showed Japan’s manufacturing sector sustained robust growth in June, with new orders surging to their fastest pace in more than four years.
South Korean shares fluctuated between gains and losses and were last 2% lower, while Taiwanese stocks opened 0.9% higher, setting a new high.
Stocks on Wall Street moved lower overnight, with the S&P 500 down 0.4%, and the Nasdaq Composite slipped 1.3%, dragged by declines in megacap technology stocks including Alphabet and SpaceX.
Traders are grappling with expectations of an accelerated schedule of rate hikes by a more aggressive Federal Reserve under the leadership of new Chair Kevin Warsh.
Fed funds futures are pricing an implied 54% probability of at least two 25-basis-point hikes before the end of the year, compared with a 15.2% chance a week ago, according to the CME Group’s FedWatch tool.
This is an intraday update