Positive sentiments at bourse, KSE-100 up 700 points
- Benchmark index was hovering at 178,953.75
The Pakistan Stock Exchange saw gains in key sectors on Tuesday, following a Monday rally, despite the SBP maintaining its policy rate. Meanwhile, Asian markets declined due to tech sector concerns.
- Pakistan Stock Exchange's positive performance.
- State Bank of Pakistan's unchanged monetary policy.
- Asian markets' decline, especially in tech.
- Global semiconductor industry challenges and China's advancements.
Buying was observed in key sectors at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 700 points during the opening minutes of trading on Tuesday.
At 9:33am, the benchmark index was hovering at 178,953.75, up by 691.42 points or 0.39%.
Buying interest was seen in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and refineries. Index-heavy stocks, including ARL, MCB, MEBL, NBP, OGDC, PPL, POL and MARI, traded in the green.
Despite signs of improvement in Pakistan’s macroeconomic outlook, the State Bank of Pakistan (SBP)’s Monetary Policy Committee (MPC) on Monday left the policy rate unchanged at 11.5%, citing heightened external risks following the resurgence of conflict in the Middle East.
On Monday, the PSX witnessed a historic rally as investor confidence returned following the suspension of military strikes between the United States and Iran, raising hopes for a diplomatic resolution to the Middle East conflict and the reopening of key shipping routes.
The benchmark KSE-100 Index gained 7,241.13 points, or 4.23%, to close at 178,262.34 points.
Internationally, Asian markets fell on Tuesday, led by chipmakers on unease about the massive funding demands of the AI boom, while a slide in oil prices did relatively little to lift bonds and left traders nervous about US rate hikes, maybe as soon as this week.
South Korea’s KOSPI dived more than 8% to a three-month low, triggering a circuit breaker, and Japan’s Nikkei slid 4%, following a 2.2% drop for the Philadelphia Semiconductor index.
Nvidia shares shed 5% overnight after the Wall Street Journal reported the company is in talks to provide roughly $250 billion in financing guarantees for OpenAI as part of a massive data centre project.
And the stellar 466% debut-day surge in CXMT Corp shares in Shanghai highlighted growing investor enthusiasm for China’s semiconductor sector and the rising competitive threat from Chinese rivals.
China has also begun manufacturing domestically developed immersion deep ultraviolet lithography machines, a chipmaking tool long dominated by Dutch supplier ASML, The Information reported on Monday, sending ASML shares down 8.5%.
South Korea’s SK Hynix fell nearly 11%, and Samsung Electronics shares shed more than 9%, while in Tokyo some of the heaviest losers were Kioxia, down 18%, and Tokyo Electron, down 9.8%.
Chinese stocks also beat a retreat, with CXMT down 7% in early trade and chipmaking indexes lower.
This is an intraday update