Buying spree continued at the Pakistan Stock Exchange (PSX) with the benchmark KSE-100 Index gaining over 500 points during the opening hours of trading on Wednesday.
At 11:10am, the benchmark index was hovering at 92,880.46, an increase of 576.14 points or 0.62%.
Buying was witnessed in key sectors including automobile assemblers, cement, commercial banks, OMCs, power generation and refinery. Index-heavy stocks including HUBCO, SSGC, PPL, HBL and MCB traded in the green territory.
Market experts attribute the optimism to the State Bank of Pakistan’s (SBP) recent policy rate cut of 250bps, bringing the interest rate down to 15%. This aggressive monetary easing has spurred investor interest, reflected in heightened buying at the PSX.
On Tuesday, the benchmark index hit new highest-ever level amid buying mainly led by local investors coupled with institutional support. The KSE-100 Index increased by 366.32 points or 0.40% and crossed the historic 92,000 psychological level to close at 92,304.32, its highest-ever level.
Internationally, the US dollar surged and bitcoin hit a record high on Wednesday while equity markets advanced as traders bet on a victory for Donald Trump as early results for the US presidential election rolled in.
While polls have shown the race for the White House on a knife-edge, the Republican appeared to be faring better than his Democratic opponent and Vice President Kamala Harris in early projections.
Both candidates have picked up expected wins in safe states, but indications that the business tycoon was edging it boosted the so-called Trump Trade.
Signs that the former president’s party was notching up better results in Congressional races boosted the prospect of sweeping tax cuts, more tariffs and deregulation – seen as a boost for the greenback.
Bitcoin piled almost $6,000 higher to a record $75,005.06, topping its previous peak of $73,797.98 hit in March.
Trump pledged during the campaign to make the United States “the world capital of bitcoin and cryptocurrencies”.
This is an intra-day update
Source: Brecorder
