Buying rally continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 crossing the 120,000 level amid a gain of nearly 700 points during the opening hours of trading on Thursday.
At 10:20am, the benchmark index was hovering at 120,617.78, an increase of 686.33 points or 0.57%.
Positive momentum was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, power generation and technology. Index-heavy stocks including HUBCO, MARI, POL, PSO, MCB, MEBL and NBP traded in the green.
“Overall bullish momentum appears intact, and further upward movement toward 120,440-120,796 and eventually 121,835-122,780 remains on the table,” said Arif Habib Limited (AHL) on Thursday.
The PSX staged a strong recovery on Wednesday, primarily driven by renewed investor confidence and speculative interest ahead of the federal budget, with notable buying activity in oil & gas and banking sector stocks.
The benchmark KSE-100 Index gained 960 points or 0.81%, closing at 119,931.5 points.
Internationally, longer-dated US Treasury yields hit their highest in 18 months on Thursday, while Asian stocks and the dollar slipped as worries of a worsening fiscal outlook in the world’s biggest economy weighed on investor sentiment.
The spotlight remains on US President Donald Trump’s tax bill that is expected to be voted on this week in Congress and investors are worried it could add about $3.8 trillion to the $36 trillion US debt pile.
The dour mood among investors after Moody’s downgraded the US credit rating last week has left markets slightly listless as a “Sell America” narrative gains traction. The greenback is hovering near its lowest in two weeks against other major currencies.
Investors have also been looking for options outside the US based on expectations it would not be immune in the event of a global recession spurred by Trump’s erratic trade policy.
Investor reluctance to buy US assets was evident on Wednesday after the U.S. Treasury Department saw tepid demand for the $16 billion sale of 20-year bonds, which pushed bond yields higher.
Japan’s Nikkei was down 0.7% on the stronger yen. China’s benchmark index slipped 0.2%, while Hong Kong’s Hang Seng index declined 0.8% in early trading.
Still, analysts have said market sentiment has been buoyed lately by economic data indicating resilience in the face of trade uncertainty brought on by Trump’s tariff salvos.
This is an intra-day update