The Pakistan Stock Exchange (PSX) witnessed another day of consolidation on Wednesday, with the benchmark KSE-100 index closing at 136,380 points, gaining 440 points or 0.32% after oscillating in both directions during the session.

Early trade saw mild negativity, with the index hitting an intraday low of 135,543 points—down 397 points (0.29%)—amid profit-taking, noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd. However, bargain hunters stepped in at the day’s low, lifting sentiment and helping the market close in the green.

Investor optimism was reinforced by Finance Minister Muhammad Aurangzeb’s latest briefing to Moody’s, where he highlighted key signs of economic recovery. These included easing inflation, a stable exchange rate, policy rate cuts, rising foreign exchange reserves—now above $14 billion—and strengthening remittance and export trends. These indicators have strengthened Pakistan’s case for a potential rating upgrade in Moody’s upcoming review.

Among the major positive contributors were fertiliser and energy stocks, with FFC, EngroH, EFERT, PSEL, and ATRL adding a combined 1,162 points to the index. Meanwhile, the banking sector weighed on performance, with UBL, MEBL, MCB, BAHL, and BAFL cumulatively knocking off 556 points due to persistent selling pressure.

Overall market activity remained subdued, with total traded volume at 702 million shares and a turnover of Rs32 billion. PIBTL led the volumes chart with 90.7 million shares traded.

The 135,000 level is expected to act as key support in the near term, underpinned by strong corporate earnings and steady foreign inflows, as noted by Ali Najib. A decisive breach could see the index test 132,000, where attractive valuations and expectations of further monetary easing may reignite investor interest and trigger fresh buying.