Market Performance
The Pakistan Stock Exchange (PSX) continued its upward trend as the benchmark KSE-100 index crossed the 80,000 level during trading on Wednesday.
- Index Level: At 1:10 PM, the benchmark index was at 80,254.72, an increase of 701.84 points or 0.88%.
- Key Sectors: Buying was observed in key sectors including cement, chemical, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and refineries.
- Index-Heavy Stocks: HBL, MCB, NBP, OGDC, PPL, PSO, SHEL, SNGPL, SSGC, and PRL traded positively.
Recent Rally
The PSX benchmark index has surged more than 10% since the FY25 budget was presented on June 12, fueled by optimism about an International Monetary Fund (IMF) bailout package to support Pakistan’s struggling economy.
Government Developments
The government announced on Tuesday that following an agreement with the IMF, expected this month or next, a comprehensive reform agenda will be presented to the nation. This agenda aims to increase the tax-to-GDP ratio to 14% and boost export and investment rates.
Global Market Influence
- Fed Chair’s Comments: Asian stocks rose on Wednesday after comments from Fed Chair Jerome Powell suggested US rate cuts might be approaching, with Powell emphasizing the need for more data before any rate cuts.
- Asian Markets: MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.26% higher, while Japan’s Nikkei rose 0.49%.
- US Treasury Yields: Powell’s comments led to a 4.3 basis point drop in US Treasury yields overnight, with the 10-year note yield steady at 4.433% in Asian hours on Wednesday, keeping the dollar subdued.
- US Labour Market Data: Investors are also considering data indicating a tight US labor market.
Recent Record High
On Tuesday, the PSX maintained its bullish momentum, driven by optimism over a new IMF deal. The KSE-100 index settled at a new record high of 79,552.89, an increase of 728.55 points or 0.92%.
