Stocks at the Pakistan Stock Exchange (PSX) continued their record-breaking rally on Wednesday, with the benchmark KSE-100 index gaining over 700 points and surging past the 86,000 mark during intra-day trading.
According to the PSX website, the market maintained upward momentum for the third consecutive day and crossed the 86,000 level at 09:37 am. By noon, the benchmark index was hovering at 86,437.69 points, with an increase of 773.72 points or 0.9% compared to the previous close.
The upward rally was fueled by positive economic signals, declining inflation, an anticipated rate cut the by central bank, and strong performance in the key market sectors which boosted investor sentiment.
Major index-heavy stocks, including oil and gas exploration companies, automobile assemblers, commercial banks, fertilizer, and oil marketing companies (OMCs), saw strong buying activity. Key performers such as PSO, PPL, OGDC, FFC, NBP, and HBL all traded in positive territory.
According to the latest data released by the SBP, remittances from overseas Pakistani workers increased by 29% YoY to $2.849 billion in September 2024.
Financial experts attribute this robust growth in remittances to the stability of the Pakistani rupee, a narrowing of the gap between the open and interbank market rates, and an uptick in the number of workers relocating abroad.
A delegation of 32 leading private sector companies from Saudi Arabia, led by Investment Minister Khalid al-Falih, will be visiting Pakistan from October 9 to October 11, 2024. This visit is set to bolster the economic ties between the two nations, with significant discussions on energy investments and bilateral agreements on the agenda.
On Wednesday, stocks in the Asia-Pacific region generally saw gains, buoyed by a robust performance in the information technology sector that mirrored an overnight surge on Wall Street.
However, Chinese markets broke a 10-day winning streak due to investor disappointment over the absence of significant economic revival measures, casting doubt on the sustainability of the recent bull run.
Japan’s Nikkei 225 index climbed 306 points to 39,213, a 0.8% increase, while Australia’s S&P ASX 200 modestly rose by 12 points to 8,188 by early morning.
Conversely, China’s CSI 300 index dropped by as much as 5% at the open. This followed a session marked by frustration among traders who felt let down by the lack of substantial economic stimuli from China’s economic planners.
In other developments, the FTSE expanded its bond and debt indices, incorporating South Korea into its benchmark bond index and adding India to its emerging market debt gauge.
