The Pakistan Stock Exchange (PSX) continued its bullish run on Thursday as the benchmark KSE-100 index surged past the 120,000 milestone, adding nearly 500 points during the early hours of trading.
At 9:35am, the index was recorded at 120,410.08, up by 478.63 points or 0.4 per cent, reflecting sustained investor interest following Wednesday’s sharp rebound.
The rally was supported by broad-based gains in key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies, power generation and technology. Blue-chip stocks such as HUBCO, MARI, POL, PSO, MCB, MEBL and NBP traded in the green, lifting overall market sentiment.
The KSE-100 had already staged a notable recovery a day earlier, climbing 960 points or 0.81pc to settle at 119,931.5 — a session that marked revived investor confidence and speculative buying, particularly in the banking and energy sectors. The ongoing rally comes amid optimism surrounding the upcoming federal budget, with market participants anticipating pro-growth measures.
Analysts foresee the bullish momentum remaining intact, with projections indicating potential upward movement toward the 120,440-120,796 range, and even further to 121,835-122,780 if current trends persist.
Meanwhile, global market sentiment remained subdued. Longer-dated US Treasury yields climbed to an 18-month high amid growing concerns over Washington’s fiscal position. Investors worldwide are closely watching the outcome of US President Donald Trump’s proposed tax legislation, which is set for a Congressional vote this week. The bill is feared to add roughly $3.8 trillion to the already ballooning $36 trillion US debt, fuelling market unease.
The downgrade of the US credit rating by Moody’s last week has deepened investor anxiety, contributing to a “Sell America” sentiment. The dollar hovered near a two-week low against major currencies, while demand for US assets remained weak — highlighted by the lukewarm response to the Treasury Department’s $16 billion sale of 20-year bonds on Wednesday, pushing yields higher.
In Asia, regional markets reflected the global caution. Japan’s Nikkei slipped 0.7pc amid a stronger yen, China’s main index dipped 0.2pc, and Hong Kong’s Hang Seng dropped 0.8pc during early trading.
