The Pakistan Stock Exchange (PSX) continued its bullish momentum on Thursday, with the benchmark KSE-100 Index surpassing the 153,000 level, driven by strong sectoral performance and improved investor confidence.
Within minutes of the market opening, the index surged by over 700 points, continuing its record-breaking run. At the start of the business session, a strong bullish trend was evident as the KSE-100 Index rose by 1,6800 points to reach 153,270. By 10 a.m., the index was at 152,974.07, reflecting a gain of 772.20 points or 0.51%. During intraday trading, the index hit a high of 153,117.26, underscoring strong investor appetite for stocks across multiple sectors.
Sector-Specific Buying Fuels Growth
Buying pressure was visible in key areas, including cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries. Index-heavy stocks such as Attock Refinery Limited (ARL), Mari Petroleum (MARI), Pakistan Oilfields (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Sui Gas Northern Pipelines (SGNPL), Habib Bank Limited (HBL), MCB Bank, Meezan Bank (MEBL), and National Bank of Pakistan (NBP) all traded in the green, driving the upward momentum.
This surge followed Wednesday’s strong performance, when the KSE-100 Index extended its record-breaking run by gaining 1,226.39 points, or 0.81%, to close at 152,201.88.
Global Market Context
Internationally, Asian stocks showed positive momentum in early Thursday trading, buoyed by dovish remarks from U.S. Federal Reserve officials that helped ease investor concerns.
- Australia: Shares rebounded by 0.8% after their steepest one-day fall since April.
- Japan: The Nikkei 225 advanced by 1.2%.
- Asia-Pacific: MSCI’s broadest index of Asia-Pacific shares outside Japan slipped by 0.2%, weighed down by losses in China.
- China: The Shanghai Composite fell by 1.6%, marking its third straight day of declines after reports suggested regulators might impose cooling measures on the market.
Bond Market Pressures and Investor Confidence
Global financial markets started September on a cautious note, with a sell-off in long-dated bonds shaking investor confidence. With the critical U.S. non-farm payrolls report due on Friday, markets remain wary of volatility.
Japan is set to test investor appetite for super-long fixed income through an auction of 30-year government bonds later today. While the recent bond sell-off slowed overnight, concerns over the fiscal health of major economies, including the U.S., Japan, and the U.K., continue to keep borrowing costs near multi-year highs.
Investor sentiment was boosted after several U.S. Federal Reserve officials, including Governor Christopher Waller, signaled support for potential rate cuts in the coming months. These dovish comments helped stabilize markets, offsetting some of the pressure from global debt concerns.
Outlook for the PSX
With the KSE-100 Index breaking past 153,000, the PSX remains firmly in bullish territory. Analysts believe continued foreign inflows, economic reforms, and stability in global markets could further strengthen the rally. However, investors are advised to remain cautious given the volatility in the global bond market and the upcoming U.S. labor data, which could influence both international and local sentiment.
