KSE-100 surges nearly 4,000 points on geopolitical optimism
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 the 170,000-point mark 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), said.
“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.
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.