PTBP Web Desk
The Pakistan Stock Exchange (PSX) experienced a significant uptick on Friday, with the benchmark KSE-100 Index gaining more than 1,600 points in the first half of the trading session. By midday, the index was recorded at 115,662.87, marking an increase of 1,625.08 points or 1.43%. This surge reflects ongoing buying interest across various sectors, maintaining the bullish trend observed in recent sessions.
According to a note from Intermarket Securities, the market’s optimism could be attributed to recent legislative successes, particularly the passing of legislation on electronic crimes in parliament. However, the breakdown of talks between the Pakistan Tehreek-e-Insaf (PTI) and the government introduced a note of caution. The brokerage also highlighted that market participants are anticipating a 100 basis points cut at the upcoming Monetary Policy Committee (MPC) meeting, which could further stimulate the market.
The buying spree was notably strong across several key sectors. Automobile assemblers, commercial banks, fertilizer companies, oil and gas exploration firms, oil marketing companies (OMCs), power generation entities, and refineries all saw positive movements. Stocks like HUBCO, PSO, SHEL, SNGP, MARI, OGDC, PPL, HBL, MEBL, and NBP were among those trading in the green, significantly contributing to the index’s rise.
This bullish session follows a day of positivity at the PSX, where the KSE-100 Index had closed with a gain of nearly 600 points at 114,037.79 on Thursday, indicating a sustained investor confidence in the market.
Globally, shares rose on Friday, primarily driven by expectations of lower US interest rates and positive developments in US-China trade relations. Comments from President Donald Trump at the World Economic Forum in Davos suggested a softer stance on global oil prices, interest rates, taxes, and potential tariffs, which influenced market sentiments.
The S&P 500 in the US hit a record high, reflecting optimism about Trump’s policy direction.
The dollar weakened as investors pondered the implications of Trump’s statements, particularly on trade and tariffs.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.6%, with Chinese stocks benefiting from Trump’s mention of a friendly conversation with President Xi Jinping, hinting at possible trade deal progress.
Both the CSI300 in China and Hong Kong’s Hang Seng Index saw gains, with increases of 0.6% and 1.7% respectively. Currencies like the Australian dollar, New Zealand dollar, and the Chinese yuan also appreciated on the back of these developments.
Despite the positive movements, there’s an underlying uncertainty due to the lack of concrete details on Trump’s tariff plans, which could influence inflation and bond yields. Treasury yields have been rising as investors adjust to the prospect of inflation driven by potential new tariffs.
