The Pakistan Stock Exchange (PSX) maintained its upward momentum on Thursday, with the benchmark KSE-100 index crossing the 120,000 mark early in the trading session. By 9:35 a.m., the index reached 120,410.08, gaining 478.63 points or 0.4%, continuing the strong investor enthusiasm seen after Wednesday’s sharp recovery.
The rally was driven by widespread gains across several key sectors, including automobile manufacturers, commercial banks, oil and gas exploration, oil marketing firms, power producers, and technology companies. Prominent blue-chip stocks such as HUBCO, MARI, POL, PSO, MCB, MEBL, and NBP traded higher, boosting overall market confidence.
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The index had already posted a significant rebound the previous day, climbing 960 points or 0.81% to close at 119,931.5, signaling renewed investor confidence and speculative buying, especially in banking and energy sectors. This bullish trend is supported by optimism around the forthcoming federal budget, with investors hopeful for growth-friendly policies.
Market analysts predict the positive trend will continue, potentially pushing the KSE-100 to a range between 120,440 and 120,796, with further upside possible toward 121,835 to 122,780 if current conditions hold.
In contrast, global market sentiment remained cautious. US Treasury yields hit an 18-month peak amid concerns over the country’s fiscal situation, as investors await the Congressional vote on President Donald Trump’s tax reform bill. The legislation is expected to increase the national debt by about $3.8 trillion, intensifying market worries.
Following Moody’s recent downgrade of the US credit rating, investor sentiment turned more negative, leading to a “Sell America” trend. The US dollar hovered near a two-week low against major currencies, and demand for US assets weakened, as seen in the subdued response to the Treasury Department’s $16 billion 20-year bond sale, which pushed yields higher.
In Asia, markets reflected global caution as well, with Japan’s Nikkei falling 0.7% due to a stronger yen, China’s main index slipping 0.2%, and Hong Kong’s Hang Seng dropping 0.8% during early trading.
