PSX KSE-100 Index Surpasses 120,000 Mark

The Pakistan Stock Exchange (PSX) witnessed sustained buying interest as the benchmark KSE-100 index exceeded the 120,000 threshold. During the initial trading hours on Thursday, the index surged by nearly 700 points.

As of 10:20 am, the KSE-100 index reached 120,617.78, reflecting an increase of 686.33 points, equivalent to a 0.57% rise.

Positive trends were evident across several significant sectors, including automobile manufacturing, commercial banking, oil and gas exploration, oil marketing companies (OMCs), power generation, and the technology sector. Major stocks such as HUBCO, MARI, POL, PSO, MCB, MEBL, and NBP all demonstrated positive trading activity.

According to Arif Habib Limited (AHL), the prevailing positive momentum suggests the potential for further upward movement, targeting levels between 120,440 and 120,796, with an eventual push towards 121,835 to 122,780.

On Wednesday, the PSX experienced a robust recovery, spurred by strengthened investor confidence and speculative investments in anticipation of the federal budget. Notably, the oil and gas, as well as the banking sectors, saw considerable purchasing activity.

The KSE-100 Index advanced by 960 points, or 0.81%, to conclude at 119,931.5 points.

Global Market Overview

Internationally, yields on long-term US Treasury bonds reached an 18-month peak on Thursday. Simultaneously, Asian equities and the US dollar experienced declines due to concerns about a deteriorating fiscal outlook in the United States, the world’s largest economy.

Attention remains focused on US President Donald Trump’s tax legislation, which is expected to be voted on in Congress this week. Investors are apprehensive about the potential addition of approximately $3.8 trillion to the existing $36 trillion US debt.

Market sentiment has been subdued following Moody’s recent downgrade of the US credit rating, leading to a cautious market environment as a “Sell America” strategy gains momentum. The US dollar is currently trading near its lowest level in two weeks against major global currencies.

Investors are also exploring opportunities outside the US, anticipating that the nation may not be immune to a global recession triggered by Trump’s unpredictable trade policies.

Investor reluctance towards US assets was apparent on Wednesday when the U.S. Treasury Department observed weak demand for its $16 billion sale of 20-year bonds, consequently driving bond yields upward.

Japan’s Nikkei index decreased by 0.7% due to the stronger yen. China’s primary index fell by 0.2%, while Hong Kong’s Hang Seng index dropped by 0.8% during early trading sessions.

Despite these concerns, analysts suggest that market sentiment has been buoyed by recent economic data, indicating resilience in the face of trade uncertainties resulting from Trump’s tariff measures.

This information provides an intra-day market update.