The buying spree continued at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index crossed the 87,000 level for the first time to settle at a new record high during trading on Wednesday.
At close, the benchmark index settled at 87,194.53 level, an increase of 727.96 points or 0.84%.
The bullish momentum was witnessed on the back of buying in index-heavy energy stocks, with shares of companies including HUBCO, KEL, PPL and OGDC traded in the green.
Experts attributed the bull-run to anticipation of another policy rate hike, amid expectation of lower inflation reading this month.
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“The decline in secondary market yields, political stability, the successful Shanghai Cooperation Organisation (SCO) summit, and local mutual fund buying were the primary reasons for this all-time high,” said Mohammed Sohail, CEO Topline Securities in a note.
On Tuesday, PSX hit than record-high levels on the back of aggressive buying mainly by local investors coupled with institutional support. The KSE-100 index increased by 409.06 points or 0.48% to close at 86,466.58.
Globally, Asian equities diverged on Wednesday after another unremarkable day on Wall Street, where rising bond yields and comments from Federal Reserve officials dampened expectations for US interest rate cuts.
A global rally that has seen several markets hit multiple records – particularly in New York – appears to have run out of gas as traders assess the US central bank’s plans in the wake of forecast-topping economic data and ahead of a tight presidential election.
They are also keeping tabs on Beijing, hoping for more measures to reignite growth after a slew of stimulus over the past month, while geopolitical tensions helped push safe-haven gold to another peak.
Bets on another bumper 50-basis-point rate cut at the Fed’s next meeting have dwindled following a recent spate of data showing the world’s top economy in rude health and the labour markets resilient.
Several key members of the bank’s policy board have said that while they are in favour of further reductions, they did not want to go too quickly.
Source: Brecorder
