Bulls Return to PSX, KSE-100 Index Surpasses 137,000

Following a decline in the previous trading session, positive sentiment resurfaced at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index exceeded the 137,000 mark in early trading on Wednesday.

At 10:00 am, the KSE-100 Index was recorded at 137,211.31, reflecting an increase of 1,271.44 points, equivalent to a 0.94% rise.

The surge in buying activity was primarily observed in the energy sector, encompassing oil and gas exploration firms, OMCs, refineries, and power generation companies. Key stocks such as ARL, MARI, HUBO, POL, SNGPL, SSGC, and WAFI demonstrated positive trading momentum.

On the preceding day, Tuesday, the PSX experienced a volatile trading period, ultimately closing in negative territory due to profit-taking pressures after a sustained period of record-breaking gains. The KSE-100 Index concluded at 135,940 points, registering a loss of 562.67 points or 0.41% compared to the previous closing figure of 136,502.54 points.

International Market Overview

Across the globe, Asian stock markets faced headwinds on Wednesday, while the US dollar strengthened to its highest level against the yen since early April. This movement followed US inflation data, which suggested that tariffs are contributing to increased prices, thereby reducing expectations for policy easing by the Federal Reserve.

US Treasury yields saw a slight increase, reaching a more than one-month high, which further bolstered the dollar’s value against the yen.

However, technology stocks showed resilience, spurred by a 4% surge in Nvidia’s stock price overnight.

US Inflation Data

Recent data released on Tuesday indicated that US consumer prices rose by 0.3% in June, aligning with projections and marking the largest increase since January. Economists have attributed the rise in the prices of goods, including coffee and home furnishings, to the import tariffs implemented by the Trump administration.

The Federal Reserve has maintained stable interest rates, awaiting clear indications of the inflationary impact of tariffs, which Chairman Jerome Powell anticipated would become evident during the summer.

Currently, traders are pricing in 43 basis points of rate reductions for the remainder of the year, with a 56.5% probability of a quarter-point cut in September.

Asian Markets

Japan’s Nikkei index, heavily influenced by technology and export sectors, remained relatively stable, oscillating between minor gains and losses. It was supported by Nvidia’s performance and the weaker yen.

Taiwan’s benchmark index increased by 0.5%, while Hong Kong’s Hang Seng index rose by 0.8%, building on Tuesday’s 1.6% tech-driven rally.

This information reflects an intra-day market update.