Summary The benchmark KSE-100 Index jumped more than 2% on Wednesday, driven by institutional buying, stable oil prices and hopes of progress in US-Iran negotiations, while investors watched US midterm result
KARACHI (Dunya News) – Equities at the Pakistan Stock Exchange (PSX) extended their upward run on Wednesday, with the benchmark KSE-100 Index adding almost 3,500 points as market participants waited for the outcome of the US midterm elections and considered what it might mean for Middle East peace efforts.
By 2:30pm, the index was trading at 171,516.70, up 3,497.84 points, or 2.08%, from the previous close.
Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder that the rally was mostly fuelled by institutional investors, particularly mutual funds. She added that crude oil, which had climbed to about $103 a barrel, had steadied around that level, lending further support to sentiment.
Tawfik noted that global markets were monitoring two major developments: early unofficial results from the US elections pointing to a noticeable political shift, and the US-Iran talks, where Washington has sent over a draft proposal. Together, she said, these factors were underpinning the local market.
Gains were seen across major sectors such as automobile assemblers, cement, commercial banks, exploration and production firms, oil marketing companies, power generation and refineries. Heavyweight scrips including ARL, HUBCO, MARI, OGDC, PPL, POL, MCB, MEBL, NBP and UBL all traded higher.
On Tuesday, the PSX had also closed higher as softer crude prices and optimism about possible US-Iran negotiations lifted sentiment. The KSE-100 gained 1,454.80 points, or 0.87%, to settle at 168,018.87.
Overseas, US stock futures dropped, Treasuries gained and the dollar weakened on Wednesday after Democrats secured early Senate victories, raising expectations that they could take the chamber from President Donald Trump’s Republicans, although the final outcome remained uncertain.
Media projections showed former North Carolina Governor Roy Cooper beating Trump-backed Republican Michael Whatley to flip a Republican-held Senate seat, giving Democrats one of the four net seats they need for a majority. In Georgia, Democrat Jon Ossoff won re-election. Democrats are favoured to win the House, while the Senate contest remains tight and is being decided state by state, keeping investors cautious about how the balance of power in Washington could change.
Prediction markets pointed to rising expectations of a Democratic sweep of Congress, with over $1.48 billion staked on the midterms.
S&P 500 futures slipped 0.8% and Nasdaq futures lost 1.8%, while the yield on the benchmark 10-year US Treasury note dropped 6 basis points to 4.906%. The election results could carry wide implications for areas sensitive to markets, including AI data centre expansion, the US fiscal outlook, defence spending and regulation in healthcare, banking and cryptocurrencies.
In Asia, shares gave up early gains and turned lower, even as chipmaker AMD posted strong earnings that eased some worries about the staying power of the AI trade. Its market-beating third-quarter results and outlook countered growing concerns that the AI boom is slowing, which were fuelled by a weak forecast from rival Intel last week. MSCI’s broadest index of Asia-Pacific shares excluding Japan declined 0.5%, South Korea’s KOSPI fell 1.6%, and Japan’s Nikkei dropped 3% on its return from a holiday.
