PTBP Web Desk
The Pakistan Stock Exchange (PSX) experienced a remarkable surge on Tuesday, with the benchmark KSE-100 Index witnessing an impressive climb of over 800 points in the early trading sessions.
By 11:15 AM, the index had reached 95,808.71, marking a 0.86% increase or 813.04 points, highlighting a strong market sentiment backed by positive macroeconomic developments.
The surge was not uniform across the board but was particularly pronounced in key sectors. Cement, banking, oil and gas exploration, oil marketing companies (OMCs), pharmaceuticals, and power generation sectors saw notable buying interest. Stocks like HUBCO, PSO, SBGPL, MARI, OGDC, PPL, MEBL, and MCB were among the top performers, reflecting a broad-based confidence in these sectors.
Improved Economic Indicators: Pakistan’s current account showed a surplus of $349 million in October 2024, a significant turnaround from a $287 million deficit the previous year. This third consecutive month of surplus has bolstered investor confidence.
No New Tax Measures: Reports indicating that no additional tax measures are being considered have further reassured investors, removing a potential overhang on market sentiment.
The positivity at the PSX isn’t an isolated event but part of a continuing trend. On Monday, the PSX hit its highest-ever level, driven by strong local investor interest and institutional support, closing at 94,995.67 after a 0.24% increase or 232.03 points. This trend underscores the robust health of the market amidst global economic uncertainties.
Internationally, while Asian stocks rose, the global market dynamics were influenced by anticipation around U.S. policy directions under President-elect Donald Trump. The potential inflationary impact of Trump’s fiscal policies, higher tariffs, and immigration restrictions has led to a reassessment of Federal Reserve actions, with markets now seeing less than a 59% chance of an interest rate cut in December 2024, down from earlier expectations.
Tech Sector Watch: Tech stocks globally have seen movements, with companies like Nvidia in focus due to upcoming earnings. This sector’s performance often sets trends in broader market indices.
Waiting on Key Appointments: Financial markets are closely watching Trump’s cabinet picks, particularly for roles like Treasury Secretary and Trade Representative, which could directly influence market policies.
The continuous gains at the PSX suggest a resilient economic environment within Pakistan, possibly setting the stage for further investment inflows. However, investors remain watchful of both domestic policy developments and global economic signals, especially from the U.S., which could sway market directions.
