KSE-100 today: PSX jumps 3,995 points past 172,000 after US midterms
The KSE-100 closed at 172,013 on Wednesday, up 2.38%, as funds bought on the US election result and Iran talk hopes. Who led and why brokers say it.
The KSE-100 index closed at 172,013.48 points on Wednesday, 4 November, up 3,994.62 points or 2.38%, its second big gain in two days. Buyers came in from the opening bell, pushed the index past 170,000 in the morning and kept going to a day’s high of 172,286.99 before the close.
On Tuesday the index had already added 1,455 points to finish at 168,018.87. Two sessions have now put on almost 5,450 points.
Why the market jumped on Wednesday
The trigger was half a world away. Results from Tuesday’s US midterm elections showed the Democrats winning control of Congress, and Karachi’s brokers read that as a sign Washington may take a calmer line on Iran.
Saad Hanif, head of research at Ismail Iqbal Securities, said investors see the Democratic sweep as good for the region’s politics, because it points to lower oil prices and easing inflation. Sana Tawfik, head of research at Arif Habib Limited, said most of the buying came from institutions, mainly mutual funds, and that oil holding steady near $103 a barrel helped. She also pointed to the US-Iran talks, where Washington has sent over a draft proposal.
For Pakistan the oil link matters more than anything. The country buys most of its fuel from abroad, so every dollar off a barrel shrinks the import bill and eases pressure on the rupee and on petrol prices at home.
Which shares led
Banks, fertiliser, cement and power companies did the heavy lifting. UBL, Fauji Fertilizer, Hub Power, Lucky Cement and National Bank together added about 1,215 points to the index. Around 841 million shares changed hands, worth roughly Rs35.3 billion.
The rupee barely moved. It closed at 276.70 to the dollar in the interbank market, one paisa stronger than Tuesday.
What to watch next
This rally rests on news from Washington and Tehran, and that can turn quickly. If the Iran talks stall or oil climbs again, brokers expect profit-taking after two strong days. Also note the market will be shut on Monday, 9 November, for Iqbal Day.
This is information, not investment advice.
