PTBP Web Desk
Stock Exchange (PSX) witnessed another day of robust buying activity on Tuesday, with the benchmark KSE-100 Index climbing significantly in the morning trading session. By 11:35 am, the index had risen by 1,721.91 points or 1.55%, reaching a level of 113,099.87. This surge reflects a broad-based buying interest in several key sectors, signaling strong investor confidence.
The rally was particularly pronounced in sectors like cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, oil marketing companies (OMCs), refineries, and power generation. Notable performers included stocks like HUBCO, PSO, SHEL, OGDC, POL, PPL, EFERT, HBL, NBP, and UBL, all contributing to the index’s upward movement.
Contributing to the positive market sentiment, the State Bank of Pakistan (SBP) reported a significant inflow of overseas workers’ remittances, amounting to $3 billion for January 2025. Although this figure represents a slight decrease of 3.2% from December 2024’s $3.1 billion, the cumulative remittances for the first seven months of FY25 reached $20.8 billion, marking a 31.7% increase from $15.8 billion in the same period of the previous fiscal year. This growth in remittances has been a crucial support for Pakistan’s foreign exchange reserves and the economy at large.
The bullish trend had already set in on Monday, with the KSE-100 Index closing with a gain of over 1,000 points at 111,377.96, indicating sustained investor optimism.
Globally, markets were responding to various economic and policy developments:
Gold Prices: Gold reached a record high, reflecting investor caution amidst geopolitical and economic uncertainties.
US Dollar and Trade Policies: The US dollar remained firm as markets digested President Donald Trump’s decisions on tariffs. Trump escalated tariffs on steel and aluminum to 25%, boosting US steelmaker stocks but adding complexity to international trade relations.
Hong Kong Market: The Hang Seng Index in Hong Kong advanced to a four-month peak, up over 12% in the last month, buoyed by the fluctuating US tariff policies, particularly the suspension and then reimposition of tariffs on Canada and Mexico, highlighting the negotiable nature of trade under the current US administration.
China-US Trade Tensions: Despite no clear progress towards a trade deal between Beijing and Washington, market expectations for a resolution remain high, influencing global investment patterns.
Expectations around Federal Reserve actions also played a role in market dynamics. Investors were particularly attentive to Fed Chair Jerome Powell’s upcoming statements on inflation and trade tariffs. Current market tools like the CME’s FedWatch Tool suggest that the Fed is likely to hold rates steady at its March meeting, with expectations for any rate cut not significantly increasing until June.
