PSX gains 4,000 points on US Midterm optimism

KARACHI (Staff Report): The Pakistan Stock Exchange (PSX) closed sharply higher on Wednesday, buoyed by positive global sentiment after the US midterm elections.

The benchmark KSE-100 Index surged by 3,994.62 points, or 2.38 percent, to close at 172,013.48 points. The index touched an intraday high of 172,286.99 and a low of 168,355.26 points during the session.

According to market data, total volume stood at 841.6 million shares, with a traded value of Rs. 35.39 billion through 416,834 trades. Market breadth remained strong with 368 advancers against 103 decliners and 97 unchanged out of 568 traded companies.

Financial analyst Sheheryar Butt attributed the rally to global optimism following the US midterm results.

“The PSX positive closing is directly linked to US midterm elections. US markets rallied sharply after results reduced political uncertainty, and that positive spillover was seen across Asian and emerging markets, including Pakistan,” he said.

He said local factors also supported the rally, with institutional buying particularly mutual funds.

“The volume of 841 million shares and value over Rs. 35 billion shows investor confidence is back. The market was ready for a rebound and global cues provided the trigger,” Butt said.

He added that expectations of further improved Pak-US ties, stable crude prices, and strong corporate earnings further lifted sentiment.

“If global momentum continues and domestic macro indicators remain stable, PSX can sustain this upward trend. The 172,000 level has now become a strong support level,” he said.