PSX KSE-100 Passes 175,000 as Rally Runs Into a Second Day

Photo: Reuters, via The News (file photo of the Pakistan Stock Exchange trading floor)

The Pakistan Stock Exchange kept climbing on Thursday morning, with the benchmark KSE-100 index passing 175,000 in early trading. At 9:45am it stood at 175,347.48, up 3,334 points or 1.94 per cent on the day. The rise came a day after the index jumped almost 4,000 points to close above 172,000 for the first time in weeks.

Thursday started where Wednesday left off. Buyers came in across the board, and the index pushed past another big round number before most people had finished their morning tea.

Business Recorder reported that buying was seen in car makers, cement, banks, oil and gas exploration firms and oil marketing companies. Heavyweight stocks including MARI, OGDC, PSO, SSGC, Hub Power, Habib Bank, MCB, Meezan Bank and National Bank all traded higher.

Wednesday had set the stage. The index closed at 172,013.48, up 3,994.62 points or 2.38 per cent from 168,018.87 the day before, Dawn reported. It touched a high of 172,287 during the day and a low of 168,355.26, and it was the first time the index had reclaimed the 172,000 level since 23 September.

The key figures tell the story in plain terms:

• Wednesday close: 172,013.48, up 3,994.62 points (2.38 per cent)
• Thursday 9:45am: 175,347.48, up 3,334 points (1.94 per cent)
• Wednesday trading: 841 million shares worth Rs35.3 billion
• Wednesday market value: Rs18.78 trillion, up from Rs18.40 trillion

So what is driving it? In short, calmer nerves about war and cheaper oil. Traders took heart from the Democrats winning big in the United States midterm elections, and from US President Donald Trump saying he had no immediate plans to strike Iran. Oil prices fell hard at the same time. Brent crude dived nearly 9 per cent overnight to below 100 dollars a barrel, and The News reported that Brent had dropped from 107.34 dollars to 102.50 dollars a barrel on Wednesday, while US crude fell below 95 dollars from 98 dollars.

For ordinary people, a rising stock market does not put money straight into anyone's pocket. It matters most for people with savings in shares, pension funds or stock-linked plans, and it is often read as a sign that investors feel a bit better about the economy. But a morning figure is not a final result. The 175,347 reading was a snapshot at 9:45am, the market was still trading, and the final close for Thursday could end higher or lower. Analysts also warn that some traders may sell to lock in quick gains after such a fast run.

The rally also sits next to other big money news this week. Pakistan's reserves and loans picture was set out in the Saudi loan rollover agreed this week, and the government's latest spending decisions came in the Rs380 billion grants cleared by the ECC. Cheaper oil, if it lasts, also feeds into the petrol price cuts seen this week, which matter far more to most households than any index level.

Sources

• Business Recorder: PSX buying continues, KSE-100 up nearly 2%
• Dawn: Equities soar past 172,000 mark on peace hopes
• The News: KSE-100 soars 3,995 points on easing geopolitical concerns

What happens next: traders will watch Thursday's final close to see if the index holds above 175,000, and whether the rally survives the next headlines from Washington and Tehran.

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