ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) witnessed a strong buying rally on Wednesday, with the benchmark KSE-100 Index climbing nearly 600 points in the opening hours of trading.
Positive Market Momentum
By 9:50 AM, the KSE-100 Index stood at 119,552.34, reflecting an increase of 581.22 points or 0.49%. This surge came after a dip in the previous trading session, where the index closed 700 points lower amid concerns over the upcoming federal budget for the financial year 2025-26.
Key sectors showing strength included commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries. Major stocks in these sectors such as HUBCO, NRL, PSO, SNGPL, SSGC, MARI, OGDC, POL, and PPL saw significant gains, contributing to the overall positive movement in the index.
Global Factors Impacting Market Sentiment
The global market context also played a role in shaping investor sentiment. Internationally, Asian stock markets showed mild growth, with a focus on rising bond yields that kept investors cautious about the fiscal outlook of major developed economies. Furthermore, global crude prices surged by more than \$1 per barrel following a CNN report suggesting Israel may be preparing to strike Iranian nuclear facilities. This geopolitical tension brought renewed concerns over oil supply from the Middle East, impacting investor decisions worldwide.
Moreover, market attention was directed at Japan’s bond markets, where yields on long-term bonds surged to record highs, following a weak auction for the country’s 20-year bonds. This triggered discussions about demand for Japan’s debt, influencing broader market dynamics.
Looking Ahead
As the PSX continues its upward trajectory, the momentum in key sectors will likely be influenced by ongoing geopolitical developments and market trends. With investor sentiment appearing cautiously optimistic in light of the positive movements on Wednesday, market analysts will be closely monitoring how global factors and domestic policy changes, particularly surrounding Pakistan’s upcoming budget, will impact the market in the weeks ahead.
