PSX sets another record, crosses 88,000 mark in anticipation of rate cut

Bulls took full control of the trading floor at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index extending its record-breaking rally by surging past the historic 88,000 mark during intraday trade on Thursday. 

According to the PSX website, the market opened on a bullish note with the benchmark index reaching 88,012.36 points at 10:42 am, up by 817.83 points from the previous close of 87,194.53 points.

Widespread buying activity was observed in major sectors such as oil and gas exploration companies, oil marketing companies, power generation firms, automobile assemblers, cement, and banks. Key stocks such as HUBCO, KEL, OGDC, PPL, PSO, and NBP saw their values increase.

At 12:42 pm, the KSE-100 was hovering at 88,201.15 points, an increase of 1006.62 points or 1.15%. 

Market analysts have attributed the recent bullish run to anticipation of another rate cut by the State Bank of Pakistan (SBP) amid expectations of a lower inflation reading in October. Many economists expect the to cut its key policy rate by 200 basis points, which would be the fourth consecutive reduction since June.

Globally, Asian shares tracked Wall Street lower on Thursday as uncertainty over the U.S. election outcome kept investors on edge, while the dollar stood tall near its three-month high, supported by elevated Treasury yields.

Nasdaq futures rose 0.5% after Tesla shares jumped 12% in after-hours trading after the EV maker reported robust third-quarter profits and surprised analysts with a prediction for 20-30% growth in sales next year.

European markets are set for a higher open ahead of a raft of Purchasing Managers’ Index (PMI) readings that will provide a gauge of the growth momentum in Europe. EURO STOXX 50 futures gained 0.2% while FTSE futures rose 0.5%.

In Asia, Tokyo’s Nikkei rose 0.1% but MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%, pressured by falls in Chinese shares. 

Both Hong Kong’s Hang Seng index and China’s blue chips dropped 1.2%.

Overnight on Wall Street, shares fell for the third straight day with major losses in the so-called Magnificent Seven tech stocks ahead of their earnings results. Nvidia for example fell almost 3%.