The buying spree continued at the Pakistan Stock Exchange (PSX) on the back of positive macroeconomic indicators as the benchmark KSE-100 Index gained over 850 points during intra-day trading on Tuesday.
At 12pm, the benchmark index was hovering at 95,857.30, an increase of 861.63 points or 0.91%.
Buying was witnessed in key sectors including cement, commercial banks, oil and gas exploration companies, OMCs, pharmaceuticals and power generation. Index-heavy stocks, including HUBCO, PSO, SNGPL, MARI, OGDC, PPL, MEBL and MCB traded in the green.
Analysts attribute the positive momentum to improved economic indicators and reports indicating that no additional tax measures are currently under consideration.
Pakistan’s current account posted a surplus of $349 million in October 2024 compared to a deficit of $287 million in the same month of the previous year, data released on Monday by the State Bank of Pakistan (SBP) showed.
This was the third consecutive month of a current account surplus.
On Monday, a bullish trend continued and PSX hit a new highest-ever level on the back of strong interest of local investors coupled with institutional support.
The benchmark KSE-100 Index increased by 232.03 points or 0.24% and closed at new highest-ever level of 94,995.67 points.
Internationally, Asian stocks rose on Tuesday while US bond yields and the dollar hung back from multi-month highs as traders awaited President-elect Donald Trump’s cabinet selection and sought to gauge the outlook for Federal Reserve easing.
Tech shares advanced, tracking Wall Street’s recovery from last week’s steep losses although Nvidia’s upcoming earnings on Wednesday limited the scope for big moves.
Markets have pared bets for a quarter-point interest-rate cut at the Fed’s next meeting in December to less than 59%, down from 62% a day earlier and more than 65% a week ago, according to CME FedWatch.
Trump’s mooted fiscal spending, higher tariffs and tighter immigration are seen as inflationary by analysts, potentially impeding Fed rate cuts, which are already being hampered by a run of resilient economic data.
Trump has begun making appointments, filling health and defence roles last week, but key positions for financial markets - Treasury secretary and trade representative - have yet to be announced.
MSCI’s index of world stocks snapped a four-day losing streak on Monday.
This is an intra-day update
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