Buying activity returned to the Pakistan Stock Exchange (PSX) on Wednesday as investor confidence lifted the benchmark KSE-100 Index by nearly 600 points during early trading hours.
At 9:50 AM, the KSE-100 was up 581.22 points, or 0.49%, standing at 119,552.34. The surge was led by renewed interest in key sectors, including:
-
Commercial Banks
-
Oil & Gas Exploration
-
Oil Marketing Companies (OMCs)
-
Power Generation
-
Refineries
Blue-chip and index-heavy stocks such as HUBCO, NRL, PSO, SNGPL, SSGC, MARI, OGDC, POL, and PPL traded in the green, contributing significantly to the day’s early rally.
This comes a day after the PSX saw a 700-point dip, closing at 118,971.12 on Tuesday, due to investor concerns surrounding the upcoming FY2025-26 federal budget.
Global Market Influence
Asian equities also showed a mixed but slightly positive tone on Wednesday. The MSCI Asia-Pacific Index (excluding Japan) rose 0.5%, while Hong Kong’s Hang Seng Index gained 0.58%. In contrast, Japan’s Nikkei edged down 0.18%, pressured by rising bond yields.
Concerns about global fiscal outlooks and a lack of progress on international trade deals kept investors cautious. Meanwhile, crude oil prices surged over $1 a barrel following a CNN report suggesting Israel may target Iranian nuclear facilities, intensifying geopolitical risks in the Middle East—home to several key oil-producing nations.
Additionally, the Japanese bond market remained under scrutiny after a weak auction led to a spike in 20-year yields, signaling broader uncertainty in sovereign debt markets.
Market Sentiment Outlook
Locally, the rebound in PSX reflects short-term buying momentum, possibly as investors reposition ahead of key budget announcements. The return of foreign interest, stronger oil prices, and sectoral recoveries are likely to keep the market sentiment cautiously optimistic, provided macroeconomic signals remain stable.
