Pakistan Stock Exchange (PSX) experienced a notable resurgence, with the benchmark KSE-100 surging over 800 points during Wednesday’s trading session. The momentum was evident as the benchmark index reached an intra-day high of 62,432.25, marking an increase of over 1,205 points.
However, as the trading session progressed, the momentum moderated slightly, and by 2:30 pm, the KSE-100 stood at 62,069.79, still showing a remarkable increase of 842.87 points or 1.38%.
This positive shift in the market sentiment coincided with reports indicating progress towards the formation of a new government in Pakistan, with various political parties expressing their willingness to collaborate. Notably, former allies such as Pakistan Muslim League-Nawaz (PML-N), Pakistan Peoples Party (PPP), Muttahida Qaumi Movement-Pakistan (MQM-P), and others announced their intention to form a coalition government and extended an invitation to Pakistan Tehreek-e-Insaf (PTI) to engage in a reconciliation process for the nation’s betterment.
Market experts foresee favorable outcomes for Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) following this development.
Earlier, on Tuesday, the PSX witnessed a dramatic turnaround after initially plummeting over 1,450 points due to concerns regarding the government’s circular debt plan, which lacked the support of the International Monetary Fund (IMF). Despite the rocky start, the benchmark index managed to recover, closing at 61,226.93, reflecting an increase of 161.61 points or 0.26%.
Globally, Asian shares mirrored a negative trend from Wall Street on Wednesday, accompanied by a rise in the dollar and Treasury yields. This shift followed traders’ recalibration of expectations regarding the pace and scale of rate cuts by the Federal Reserve this year, prompted by a higher-than-expected US inflation rate of 3.1% on an annual basis, exceeding forecasts for a 2.9% increase.
