The Pakistan Stock Exchange (PSX) experienced a strong performance on Tuesday, boosted by favorable economic indicators. The benchmark index surged by over 650 points during trading, reaching an intra-day peak of 86,846.03.
By around 2:45 PM, the index had dipped slightly but remained robust, trading at 86,718.73 points, up by 661.22 points or 0.77%.
Broad-based investments were noted across major sectors such as automobile manufacturing, cement, chemicals, commercial banking, and oil and gas, with prominent stocks like OGDC, PPL, SSGC, HBL, and MEBL showing gains.
Experts attribute this positive market sentiment to improved indicators, including a current account surplus for September and decreased political uncertainty following the parliament’s approval of the 26th Constitutional Amendment Bill. “Political clarity is driving this momentum,” said Sana Tawfik, Head of Research at Arif Habib Limited.
Additionally, corporate results align with market expectations, with Tawfik predicting a Consumer Price Index (CPI) reading of 6.3% for October. Market forecasts suggest inflation could fall between 6.3% and 6.5%, increasing calls for a more significant policy rate cut.
On Monday, the PSX had already shown impressive gains, with the benchmark index rising by 807.42 points (0.95%) to close at 86,057.52, surpassing the crucial 86,000 mark.
In contrast, global Asian markets dipped, and the U.S. dollar maintained multi-month highs on Tuesday, as investors seemed cautious ahead of the upcoming U.S. elections. The benchmark 10-year Treasury yields rose to 4.19%, while gold prices reached a record high above $2,740 per ounce. Japan’s Nikkei dropped 1.1%, hitting its lowest point since early October, and MSCI’s Asia-Pacific index outside Japan fell by 0.8%. Wall Street also saw slight declines overnight, with futures in Asia following suit.
