PSX: KSE-100 accumulates nearly 4,000 points as investors bet on US midterms, Iran talks

The Pakistan Stock Exchange (PSX) witnessed a strong bullish session on Wednesday, with the benchmark KSE-100 Index gaining nearly 4,000 points amid institutional buying and improving sentiment over geopolitical developments following US midterm election results.

The benchmark index opened on a positive note and maintained its upward momentum throughout the session. It initially surged sharply, crossing 170,000 before witnessing some consolidation and a brief dip around 11am.

However, buying interest returned around midday, allowing the index to resume its upward trajectory. The rally gained further momentum, with the benchmark extending its gains and approaching the intraday high of 172,286.99 towards the end of the session.

At close, the KSE-100 Index settled at 172,013.48, up 3,994.62 points or 2.38%.

“Buying has mainly come from institutions, particularly mutual funds, which is driving the interest we are seeing,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.

“Secondly, oil prices had risen to around $103 and have stabilised at that level, which has also helped sentiment,” she added.

Globally, the analyst said, the US market is closely watching geopolitical developments.

“One is the US election, where the unofficial numbers coming in so far show a visible shift. The other is the US-Iran talks, where the US has sent a draft.

All these factors together are supporting the market at the moment.”

Similarly, Saad Hanif, Head of Research at Ismail Iqbal Securities, said that the rally is partly tied to the US midterm elections.

“Investors read a Democratic sweep as positive for regional geopolitics, expecting a more measured approach from Washington and a stronger preference for negotiation over confrontation in the region.

“That outlook is feeding expectations of lower global oil prices and easing inflation, which is a favourable backdrop for Pakistan’s market and has lifted sentiment, taking the PSX up 4,000 points,” he said.

Topline Securities, in its post-market report, said the positive momentum was primarily driven by optimism surrounding potential progress in US-Iran diplomatic negotiations, relative stability in international oil prices, and renewed accumulation in heavyweight stocks.

“Buying activity remained broad-based, with key sectors, including commercial banks, fertilisers, cement and energy, attracting significant investor interest. Overall, the session reflected an improvement in market sentiment and a strengthening risk appetite among investors,” it said.

On the contribution front, UBL, FFC, HUBC, LUCK and NBP emerged as the leading positive contributors, collectively adding approximately 1,215 points to the benchmark index and providing substantial support to the market’s overall performance, Topline reported.

On Tuesday, PSX rallied as easing international crude oil prices and optimism over potential negotiations between the United States and Iran improved investor sentiment. The KSE-100 Index advanced by 1,454.80 points, or 0.87%, to close at 168,018.87 points.

Globally, US stock futures slumped, Treasuries rallied, and the dollar softened on Wednesday as Democrats notched early Senate wins, fuelling bets they could wrest control of the chamber from President Donald Trump’s ​Republicans, though the outcome remained uncertain.

In North Carolina, former Governor Roy Cooper easily defeated ‌Trump-backed Republican Michael Whatley to flip a Republican-held Senate seat, according to media projections, handing Democrats one of the four net gains they need to secure a majority.

Democrat Jon Ossoff won re-election in Georgia. Democrats are favoured to capture the House, while the fight for the Senate ​remains a closely contested state-by-state battle, keeping investors on edge as they gauge the implications for Washington’s balance ​of power.

Prediction markets signalled ​growing expectations of a Democratic sweep of the US Congress, with more than $1.48 billion wagered on the midterm elections in a ​fresh test for the novel markets.

Futures for the S&P 500 slid 0.8% while Nasdaq futures fell 1.8%. The yield on the benchmark US 10-year Treasury note fell 6 basis points to 4.906%.

Tuesday’s outcome could hold broad implications for market-sensitive areas including the AI dead-centre buildout, the US fiscal outlook, defence spending ​and regulation in areas such as healthcare, banking and cryptocurrencies.

In Asia, stocks reversed earlier gains to trade lower ​as investors brushed off strong ​earnings from chipmaker AMD ⁠that appeared to ease some concerns over the durability of the AI trade.

The forecast and market-beating third-quarter results offered a strong counterpoint to mounting fears that the AI boom ​is losing steam after rival Intel issued a weak outlook last week.

MSCI’s broadest index of Asia-Pacific ​shares outside Japan fell ⁠0.5%. South Korea’s KOSPI slid 1.6% while Japan’s Nikkei fell 3% after returning from a holiday.

Meanwhile, the Pakistani rupee continued its marginal gain against the US dollar in the inter-bank market on Wednesday. The local unit closed the day at 276.70, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 841.61 million from 517.34 million recorded in the previous close.

The value of shares rose to Rs35.39 billion from Rs20.70 billion in the previous session.

TPL Properties was the volume leader with 67.85 million shares, followed by B.O.Punjab with 58.20 million shares, and K-Electric Ltd. with 57.36 million shares.

Shares of 499 companies were traded on Wednesday, of which 368 registered an increase, 103 recorded a fall, and 28 remained unchanged.