KEY POINTS
- KSE-100 closes above 157,000 for first time, extends rally to ninth straight session
- Shanghai Electric terminates $1.77bn K-Electric share purchase deal
- Asian stocks follow Wall Street higher on Fed rate cut bets
- Rupee posts 24th straight gain, settles at 281.60 against US dollar
ISLAMABAD: The Pakistan Stock Exchange (PSX) maintained its record-breaking run on Wednesday as strong corporate results further boosted investor confidence. The benchmark KSE-100 Index crossed the 157,000-point mark for the first time in history.
The index climbed to an intra-day high of 157,479.42 before closing back at 157,020.79, up 457.27 points or 0.29% over the preceding session.
This marked the ninth consecutive session of gains. A day earlier, the index had surged 476.22 points to settle at 156,563.53.
On the corporate front, Shanghai Electric Power (SEP) announced it was terminating its long-pending deal to purchase 18.3 billion shares in K-Electric for $1.77 billion, ending years of uncertainty over the utility’s ownership.
Strong corporate earnings announcements have kept sentiment upbeat, while expectations of monetary easing are also adding to the rally,” Fahad Rauf, Head of Research at Ismail Iqbal Securities, told Reuters, adding that the upward momentum had broadened into multiple sectors.
Trading activity stood at 996.27 million shares, marking a decline of 1.97 per cent from 1.016 billion in the previous session, while traded value slipped by 1.94 per cent to Rs 52.73 billion.
Despite the dip in volumes, market capitalisation increased by 0.35 per cent, adding Rs 64.73 billion to settle at Rs 18.36 trillion compared with Rs 18.29 trillion of the previous session.
The Bank of Punjab, K-Electric, and Hum Network emerged as the top three volume leaders. Out of 486 active companies, 226 advanced, 227 declined, and 33 remained unchanged, showing a fairly balanced breadth.
Among gainers, Lotte Chemical rose 10.02 per cent, Lucky Core Industries climbed 10 per cent, and Hum Network gained 9.28 per cent.
The laggards were led by Bank of Punjab, down 4.98 per cent, followed by Pioneer Cement, which shed 2.78 per cent, and K-Electric, losing 2.61 per cent.
“The mix of gainers and losers reflects selective profit-taking even as the index pushes into uncharted territory,” a senior broker observed.
Regionally, equities tracked Wall Street higher as bets grew that the U.S. Federal Reserve would cut rates next week. Japan’s Nikkei added 0.3 per cent, South Korea’s KOSPI rose 1.3 per cent, and Taiwan’s benchmark advanced 1.46 per cent to a record high.
Hong Kong’s Hang Seng gained 0.5 per cent and Chinese blue chips inched up 0.2 per cent, while overnight the S&P 500, Nasdaq and Dow Jones all closed at fresh highs.
Globally, Asian equities mirrored Wall Street’s strength as traders grew more confident that recent weakness in the US labour market would prompt the Federal Reserve toward a rate cut next week.
Japan’s Nikkei gained 0.3%, South Korea’s KOSPI jumped 1.3%, and Taiwan’s benchmark index climbed 1.46% to a record high. Hong Kong’s Hang Seng advanced 0.5%, while Chinese blue chips edged 0.2% higher.
Overnight, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all ended at fresh all-time highs.
Futures pointed higher again on Wednesday as markets priced in a near-certain quarter-point rate cut, with slim odds of a larger half-point reduction, according to the CME FedWatch Tool.
Meanwhile, the Pakistani rupee extended its winning streak in the inter-bank market. The local currency closed at 281.60 against the US dollar, appreciating by Re0.01. This marked its 24th straight session of gains against the greenback.
