The Pakistan Stock Exchange (PSX) continued its record-setting rally for a fourth consecutive session on Wednesday on “strong” corporate results, soaring past 144,000 points during intraday high.
The benchmark KSE-100 index rose by 1,041.24 points (0.73 per cent) to reach 144,078.40 points at 1:29pm, from the previous close of 143,037.16 points.
The market reached an intraday high of 144,285.74 points at 11:37am, gaining 1,248.58 points (0.87pc) from yesterday’s close.
Awais Ashraf, research director at AKD Securities, told Dawn.com: “The market rallied on strong corporate results, along with hefty payouts in the banking and fertiliser sectors.
“Moreover, expectation of clearance of circular debt during the next week has rejuvenated interest in companies having exposure in coal-based power plants, distribution companies of oil and gas, and upstream exploration and production companies,” he added.
The interest in the oil and gas sector follows an agreement between Pakistan and the United States that will allow the two allies to work together on developing Pakistan’s vast oil reserves.
Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, also said the market was “up as corporate results are expected to be better”.
A key factor behind the market’s upbeat performance was also the release of Pakistan’s fiscal data for FY25. The government reported a nine-year low fiscal deficit of 5.38pc, with revenue growth of 36pc year-on-year (YoY), outpacing an 18pc rise in expenditures.
This performance surpassed both the government’s and the International Monetary Fund’s (IMF) forecast of a 5.6pc GDP deficit. The positive fiscal data, along with market optimism over fiscal discipline and macroeconomic stability, is expected to fuel further market momentum in the coming sessions.
India’s central bank holds rates amid US tariff battle
Meanwhile, India’s central bank maintained its key interest rate at 5.50pc as US President Donald Trump ramped up threats to raise tariffs on New Delhi because of Russian oil purchases.
The Reserve Bank of India (RBI) kept steady the repurchase rate, the level at which it lends to commercial banks, after a unanimous vote by a six-member panel.
Bank governor Sanjay Malhotra said global trade challenges remained but that the “Indian economy holds bright prospects in the changing world order”. “We have taken decisive and forward-looking measures to support growth,” he said in a statement.
The RBI cut rates for the first time in nearly five years in February and followed up with two other reductions in April and June.
Trump’s announcement on Tuesday to “substantially” hike tariffs on Indian imports because of New Delhi’s purchases of Russian oil has added pressure on India.
Before that threat was made, the existing 1pc US tariff on Indian products was already due to rise to 25pc on Thursday. Malhotra acknowledged that “the uncertainties of tariffs are still evolving” even though “growth is robust”.
More to follow