Positive sentiments dominated the Pakistan Stock Exchange (PSX) on Wednesday, following an assurance by Field Marshal Syed Asim Munir to Pakistan’s business community. The benchmark KSE-100 Index surged by nearly 700 points during the early hours of trading, reflecting a strong resurgence in investor confidence.
By 9:35am, the index was seen hovering around 140,082.55, marking a gain of 662.94 points or 0.48%. Active buying was witnessed across several key sectors such as automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, power generation, and refineries. Heavyweight stocks like HUBCO, NRL, MARI, OGDC, PPL, POL, SNGPL, and SSGC all traded in the green.
This bullish momentum was a continuation of Tuesday’s performance when the KSE-100 had closed up by 1,202 points or 0.87%, settling at 139,419.62 points. The rally was driven by positive developments in both the economic and political landscape.
PSX Soars to Record High as KSE-100 Index Surpasses 135,000
A significant turning point was the meeting between COAS Asim Munir and top business leaders. The Chief of Army Staff pledged full support for Pakistan’s economic stability and directed the Federal Board of Revenue (FBR) to initiate constructive dialogue with the business community. His intervention to suspend controversial powers under Sections 37A and 37B of the Sales Tax Act 1990—which allowed arrest and detention—was lauded by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
Internationally, markets were upbeat as well. A notable rally in Japanese equities was observed after former U.S. President Donald Trump announced a new trade agreement with Japan, reducing auto tariffs to 15%. Japan’s Nikkei 225 climbed 2.6%, with auto manufacturers like Mazda and Toyota surging by 17% and 11%, respectively.
EUROSTOXX 50 futures rose 0.8%, and Wall Street futures edged higher by 0.1%. Chinese blue-chip stocks also ticked up 0.3%, while Hong Kong’s Hang Seng Index increased by 0.5%. The broader MSCI Asia-Pacific ex-Japan Index saw a gain of 0.6%.
Looking ahead, US-China negotiations are set to resume in Stockholm, potentially extending the August 12 deadline for a new trade deal. Global sentiment remains cautiously optimistic, providing additional momentum to regional markets including Pakistan.
