The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed last session of the week higher by 843 points, after selling in the final hours trimmed around half of the intra-day gains.
The KSE-100 started Friday’s session with a strong buying spree that pushed the index to an intra-day high of 115,779.06, a gain of more than 1,700 points as compared to the previous day close.
However, some late-session selling cut the earlier gains, pushing the benchmark index close the day at 114,880.49, a gain of 842.70 points or 0.74%.
“Market may draw optimism from the government being able to pass legislation on electronic crimes in parliament. However, talks between PTI and government have seemingly broken down,” said Intermarket Securities in a note on Friday.
The brokerage house added that market participants are eyeing a 100 basis points cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for Monday, January 27, 2025.
On Thursday, positivity returned to the PSX with the KSE-100 closing with a gain of nearly 600 points at 114,037.79.
Global shares rose on Friday buoyed by the prospect of lower US interest rates and a US-China trade deal following comments from President Donald Trump, while the yen steadied ahead of a widely expected hike from the Bank of Japan.
In a sign of policies to come, Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wants to lower global oil prices, interest rates and taxes, and warned of tariffs on exports to the United States.
The comments moved markets, with the S&P 500 hitting a record high and the dollar on the defensive as investors remain cautious about Trump’s next moves on trade and tariffs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% boosted by Chinese stocks after Trump said his recent conversation with President Xi Jinping was friendly, adding he thought he could reach a trade deal with China.
Those comments sent China’s CSI300 blue-chip index 0.6% and Hong Kong’s Hang Seng index 1.7% higher. The Australian and New Zealand dollars, as well as the yuan, rose on signs of a softer stance on tariffs from Trump.
With no new details on Trump’s tariff plans, the uncertainty has weighed on bond prices. Treasury yields have been on the rise as bond investors brace for eventual tariffs that may stoke inflation.
Meanwhile, the Pakistani rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Friday. At close, the currency settled at 278.75 for a loss of Re0.03 against the greenback.
Volume on the all-share index decreased to 632.04 million from 675.54 million on Thursday.
The value of shares increased to Rs37.80 billion from Rs30.47 billion in the previous session.
Cnergyico PK was the volume leader with 61.45 million shares, followed by Sui South Gas with 57.68 million shares, and WorldCall Telecom with 33.77 million shares.
Shares of 445 companies were traded on Friday, of which 226 registered an increase, 167 recorded a fall, while 52 remained unchanged.
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