PSX Gains as Global Markets Await Fed Rate Cut

The Pakistan Stock Exchange (PSX) opened on a strong note Wednesday, with the benchmark KSE-100 Index climbing over 400 points in the early hours of trading.

At 9:50am, the index stood at 156,582.41, up by 401.47 points or 0.26%. Gains were fueled by buying in key sectors such as banking, oil and gas, automobiles, and cement. Major contributors included OGDC, POL, PRL, ARL, HBL, MCB, and UBL, which all posted early gains.

The positive performance in Karachi came against a contrasting backdrop of global uncertainty. Internationally, markets were subdued ahead of a widely anticipated interest rate decision by the US Federal Reserve.

The Fed is expected to trim rates by a quarter percentage point, but investor focus remains on Chair Jerome Powell’s comments on future monetary policy direction.

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MSCI’s broad index of Asia-Pacific shares outside Japan slipped 0.2%, while Japan’s Nikkei retreated 0.1% after hitting a record high a day earlier.

European markets, however, showed resilience with Euro Stoxx 50 futures up 0.35% and German DAX futures gaining 0.4%. US S&P 500 futures edged slightly higher.

In Canada, policymakers are also expected to cut rates to address slowing growth, a weak labour market, and trade-related challenges.

Despite external caution, Pakistan’s Finance Ministry stressed that the country’s debt position is more sustainable due to improved ratios, early loan repayments, and lower borrowing costs. The statement reinforced investor confidence, helping local equities extend Tuesday’s winning streak.