Pakistan Stock Exchange Surges Following US Midterm Elections

The Pakistan Stock Exchange experienced a massive two-day rally, with the benchmark KSE-100 Index surging over 8,500 points. On Wednesday, the index rose 3,994.62 points, or 2.38%, to close at 172,013.48. This momentum accelerated on Thursday, with the index climbing more than 4,500 points in early trading to reach 176,604.

Investor confidence was primarily driven by the results of the United States midterm elections, which saw Democrats secure control of Congress. Market sentiment was further bolstered by reports of a draft proposal between the US and Iran, alongside indications from Donald Trump that no immediate military strike against Iran was planned. A decline in international oil prices, with Brent crude falling to $101.85 a barrel, also contributed to the bullish trend.

Banking, fertilizer, and power stocks led the gains on Wednesday, while TPL Properties recorded the highest trading volume. Despite the overall surge, the National Clearing Company of Pakistan reported that foreign investors sold shares worth Rs1.16 billion. While the PSX soared, other Asian markets showed mixed results, with gains in Hong Kong and China contrasted by declines in South Korea, Taiwan, and Japan.