PSX opens bullish after US Midterm Elections and falling oil prices
KARACHI (News Desk): The Pakistan Stock Exchange (PSX) witnessed a strong bullish opening on Thursday, with the benchmark KSE-100 Index surging more than 4,400 points during early trading amid a decline in international oil prices and the Republican Party’s setback in the US midterm elections.
The benchmark index opened with a gain of 2,461 points, reaching 174,474 points against the previous session’s close. Buying momentum subsequently accelerated, taking the index up by 4,433 points to 176,447 points during intraday trading.
The rally helped the benchmark index reclaim four major psychological levels of 173,000, 174,000, 175,000 and 176,000 points, reflecting strong buying interest and improved investor sentiment.
Financial analyst Jibran Sarfraz told The Karachi Post that the bullish momentum came as international crude oil prices dropped below the $100-per-barrel threshold. Both Brent crude and West Texas Intermediate (WTI) witnessed significant declines, with Brent trading around $97 per barrel after falling by nearly 8 per cent.
He said the decline in global oil prices is particularly significant for Pakistan, which relies heavily on imported petroleum products to meet domestic energy requirements. Lower crude prices could ease pressure on the country’s import bill, improve the current account position and help contain imported inflation.
Meanwhile, the Republican Party’s defeat in the US midterm elections dealt a political setback to President Donald Trump, adding another dimension to global market sentiment amid continuing geopolitical uncertainties.
“Investors appeared encouraged by the prospect of easing international oil prices and reduced geopolitical risks, triggering strong buying activity at the local bourse.” Jibran added.
The market’s early performance reflected renewed confidence among investors, although the sustainability of the rally will depend on developments in global energy markets, geopolitical conditions and Pakistan’s economic outlook.
Trading was still underway at the time of reporting, and the index’s final closing position had yet to be determined.