The Pakistan Stock Exchange put on a strong show on Wednesday as PSX gains 1270 points, with the benchmark KSE-100 index closing at 165,736.76. The index gained 1,269.55 points, or 0.77 per cent, in a session where buying gathered pace in the final hours.
The market opened on a steady note and quickly advanced to 164,830.55, up 363.35 points, or 0.22 per cent, within minutes of the opening bell. It touched an intra-day high of 166,100.34 and a low of 164,355.83 before late buying carried it to the close.
Asian equities also rose during the day, helped by optimism around demand for artificial intelligence and ahead of earnings announcements by major United States companies. That tone supported sentiment in Karachi, even though geopolitical risks continued to cloud the outlook and oil prices stayed a concern.
PSX gains 1270 points: banks and fertiliser lead
Equity trader Ahmed Sheraz of KASB KTrade said buying interest stayed broad, led by commercial banks, fertiliser, automobile and power stocks. Among major contributors, Fauji Fertiliser led the rally after an attractive dividend announcement of Rs18.5 per share, with results broadly in line with expectations.
National Bank followed with decent earnings, while Hub Power supported the index on the back of a payout of Rs5 per share. JS Global analyst Nawaz Ali said bullish activity continued for a third straight session, driven by investor optimism about a possible easing of geopolitical tensions.
Market sentiment kept improving after the State Bank’s 50-basis-point policy rate hike to 12 per cent, which came in lower than expectations. That outcome supported banking stocks, while cyclical sectors also saw renewed buying interest, allowing the market to settle at higher levels.
Topline Securities observed that the benchmark index kept a positive path through the session, with the intra-day rise reaching 1,633 points while the downside stayed limited to 111 points. Overall trading volumes rose to 578 million shares from Tuesday’s total of 402 million. The value of traded shares stood at Rs26 billion.
Shares of 496 companies were traded in the ready market. Of these, 269 stocks closed higher, 180 fell and 47 stayed unchanged. Foreign investors sold shares worth Rs624 million, the National Clearing Company reported.
Why the rate decision mattered more than the rate itself
The market had feared a sharper tightening. When the State Bank raised the rate by 50 basis points to 12 per cent, traders read the move as a balancing act rather than a shock. That reading matters because banks earn more when rates stay high, but borrowers and cyclical firms suffer if rates keep climbing without pause.
The same morning brought a warning from economists that more hikes may follow if oil prices stay high, as reported here: More SBP Rate Hikes May Follow, Economists Warn. The market’s answer, at least for one session, was that the feared worst case had not arrived. State Bank Governor Jameel Ahmad had also pointed to improving economic data in a speech the same morning, as reported here: SBP Governor Says Economic Data Improves Despite Shocks.
The rally also extends a run. The KSE-100 closed at 164,467.20 on October 27 after gaining 1,428.73 points, as reported here: KSE-100 Gains 1,428 Points to Close at 164,467. Wednesday’s close at 165,736.76 sits above that level, even though the daily gain was smaller. The market had also moved ahead of the rate decision, as reported here: PSX Opens Lower Ahead of Rate Decision, while a sharp fall earlier in the month showed how fast the mood can turn, as reported here: PSX Falls 4,045 Points.
What could still hold the market back
Sheraz warned that Brent crude near $115 a barrel remains a key concern, alongside geopolitical uncertainty involving Iran, Israel and the United States. Ali added that any positive development in the United States-Iran situation that brings crude prices down could further improve investor confidence.
For now, the balance favours buyers: earnings are driving stock-specific moves, the rate hike came in below fears, and regional markets offered support. The risks that could reverse that balance, oil and geopolitics, have not gone away.
How much did the KSE-100 gain?
It gained 1,269.55 points, or 0.77 per cent, to close at 165,736.76.
Which stocks led the rally?
Fauji Fertiliser led after a Rs18.5 per share dividend announcement, followed by National Bank on decent earnings and Hub Power on a Rs5 per share payout.
