KSE-100 Index Gains Over 2,400 Points as Buying Continues at PSX

The KSE-100 Index climbed more than 2,400 points during Wednesday’s trading session as buying continued at the Pakistan Stock Exchange (PSX). Investors remained focused on the US midterm elections and their possible impact on geopolitical developments and peace talks in the Middle East.

At 12:30pm, the benchmark index stood at 170,426.50 points. This represented a gain of 2,407.64 points, or 1.43%, during the session.

Institutional Buying Supports Market Rally

Sana Tawfik, Head of Research at Arif Habib Limited (AHL), said institutional investors were driving much of the buying activity.

She told Business Recorder that mutual funds were particularly active in the market. Their purchases had helped sustain investor interest and support the index.

Tawfik also pointed to international oil prices as a factor behind the improved sentiment. Crude prices had risen to around $103 per barrel before stabilising at that level.

She said investors were also tracking developments in the United States. Early election results indicated a shift in the political landscape, while Washington had reportedly sent a draft proposal for talks with Iran.

Together, these developments were providing support to the stock market, she added.

Key Sectors and Heavyweight Stocks Trade Higher

Buying activity extended across several major sectors. Automobile assemblers, cement companies, commercial banks and oil and gas exploration firms attracted investor interest.

Oil marketing companies (OMCs), power generation firms and refineries also traded higher.

Several index-heavy stocks contributed to the gains. Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Mari Energies, Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) traded in positive territory.

Major banking stocks, including MCB Bank, Meezan Bank, National Bank of Pakistan and United Bank Limited, also recorded gains.

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PSX Extends Previous Session’s Rally

The latest advance followed a strong session on Tuesday. The KSE-100 Index gained 1,454.80 points, or 0.87%, to close at 168,018.87 points.

Easing international crude oil prices and optimism over possible negotiations between the United States and Iran had supported the earlier rally.

Wednesday’s gains extended that recovery as investors continued to assess geopolitical risks and their potential impact on energy prices and financial markets.

US Midterm Elections Keep Global Investors Cautious

International markets showed a mixed response to early US midterm election results. US stock futures declined, Treasury prices rose and the dollar weakened as Democrats recorded early gains.

In North Carolina, former Governor Roy Cooper defeated Trump-backed Republican candidate Michael Whatley, according to media projections. The result flipped a Republican-held Senate seat.

Democrat Jon Ossoff also secured re-election in Georgia. Meanwhile, Democrats were favoured to win the House of Representatives, while control of the Senate remained uncertain.

Investors were assessing what a possible shift in congressional control could mean for US economic policy. Key areas include artificial intelligence investment, government spending, defence, healthcare, banking and cryptocurrency regulation.

US futures reflected the cautious mood. S&P 500 futures fell 0.8%, while Nasdaq futures declined 1.8%. The yield on the 10-year US Treasury note dropped six basis points to 4.906%.

Asian Markets Lose Ground Despite Strong Tech Earnings

Asian equity markets also weakened during Wednesday’s session. Investors looked beyond strong earnings from chipmaker AMD and remained cautious about the outlook for technology stocks.

AMD’s better-than-expected third-quarter results and forecast offered some reassurance. However, concerns persisted about the sustainability of the artificial intelligence investment boom, particularly after Intel issued a weak outlook the previous week.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%. South Korea’s KOSPI declined 1.6%, while Japan’s Nikkei dropped 3% after reopening following a holiday.

The contrasting performance of regional and Pakistani markets highlighted the importance of local institutional demand and geopolitical expectations. Investors at the PSX will continue to monitor election developments, oil prices and prospects for US-Iran negotiations.