PSX Experiences Positive Momentum

The Pakistan Stock Exchange (PSX) displayed positive indicators, with the KSE-100 Index climbing nearly 500 points during Tuesday’s trading session.

As of 11:20 am, the benchmark index was recorded at 122,694.22, reflecting an upswing of 468.87 points, approximately 0.38%.

Purchasing activity was evident in significant sectors such as automobile manufacturing, cement, commercial banking, oil and gas exploration, OMCs, power generation, and refineries. Stocks with substantial index weight, including HUBCO, ARL, PSO, SNGPL, MARI, POL, and PPL, were actively traded.

In accordance with market forecasts, the Monetary Policy Committee (MPC) at the State Bank of Pakistan (SBP) opted to maintain the policy rate at its current level of 11%.

The MPC observed that the rise in inflation during May, reaching 3.5% year-over-year (y/y), was consistent with prior expectations, while core inflation showed a slight decrease.

The PSX concluded Monday’s trading day with varied results across its indices, demonstrating mixed market sentiment.

While the KSE-100 Index saw a slight increase, broader market activity revealed an ongoing balance between optimistic and pessimistic market forces. The KSE-100 Index showed a minor increase of 81.79 points, or 0.07%, settling at 122,225.36 points at the close.

International Market Overview

Internationally, U.S. stock futures experienced declines, and oil prices increased on Tuesday. These shifts occurred as investors responded to geopolitical uncertainty stemming from concerns about escalating regional conflicts.

Market anxieties were heightened by reports indicating potential shifts in international relations, prompting risk-averse strategies in early Asian trading. S&P 500 futures declined by 0.46%, and European futures dropped by 0.69%, while crude prices saw a temporary surge of over 2%.

On Monday, Wall Street closed with gains following reports that diplomatic efforts were underway, which initially eased concerns about rising crude prices.

Geopolitical tensions have led to increased investor interest in safe-haven assets such as gold, which rose by 0.5%. A rise in U.S. Treasuries also contributed to lower yields across the spectrum.

The yield on the benchmark 10-year note decreased by approximately 2 basis points, reaching 4.43%.

The dollar strengthened against major currencies, reflecting its role as a safe asset amid tighter trading ranges.

MSCI’s index of Asia-Pacific shares outside Japan showed a slight increase, with futures tracking Hong Kong’s Hang Seng index also experiencing marginal gains.

This is an intra-day update.