A volatile session was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index oscillating both ways before settling flat on Wednesday.
The market began trading on a positive note with the KSE-100 Index hitting an intra-day high of 157,196.58. However, profit-taking was observed during the day, dragging the benchmark index to an intra-day low of 155,960.35.
At close, the benchmark index settled at 156,177.81, a decrease of 3.13 points.
In a statement, the Ministry of Finance reiterated that Pakistan’s debt trajectory “is more sustainable today than suggested by headline rupee figures”, citing improvements in the debt-to-GDP ratio, early repayments of loans, lower interest costs, and a stronger external account.
On Tuesday, PSX extended its winning streak, buoyed by investor optimism after the State Bank’s reassuring remarks on the economy despite flood devastation in Eastern Punjab.
Internationally, shares edged lower on Wednesday as global markets counted down to an anticipated rate cut by the Federal Reserve later in the day and waited on signals around the extent of future easing.
The Fed is expected to cut its benchmark interest rate by a quarter of a percentage point to the 4.00%-4.25% range at the end of its monetary policy meeting later in the global day. The main focus beyond the rate decision will be on Chair Jerome Powell’s comments on the outlook for US monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%, after Wall Street closed lower.
Japan’s Nikkei stock index slid 0.1% after a record close on Tuesday.
European and US stock futures were firmer after a largely soft cash session overnight. The pan-region Euro Stoxx 50 futures were up 0.35%, German DAX futures gained 0.4% and FTSE futures added 0.2%. US stock futures, the S&P 500 e-minis, crept up 0.1%.
The Bank of Canada is also expected to cut rates on Wednesday to contend with a flagging labour market and trade frictions.
