PSX Experiences Bullish Trend, KSE-100 Surges Past 1,400 Points

The Pakistan Stock Exchange (PSX) saw optimistic trading as investors responded favorably to an improvement in the sovereign credit rating and consistent positive corporate earnings reports. The KSE-100 Index, a key market indicator, jumped by more than 1,400 points during Monday’s trading session.

As of 3:05 PM, the index stood at 147,928.43, reflecting an increase of 1,436.80 points, or 0.98%.

Substantial buying activity was evident in prominent sectors such as cement, commercial banks, fertilizer, oil and gas exploration, oil marketing companies, and power generation. Major stocks like HUBCO, SNGPL, SSGC, MARI, OGDC, PPL, POL, MEBL, and UBL all demonstrated positive movement.

Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, noted that the market’s upward trajectory is fueled by robust corporate performance and expectations of reduced interest rates.

Market analysts pointed out the robust liquidity, with funds actively reallocating from fixed income and money market instruments towards equities.

Investor confidence was boosted by Moody’s decision to upgrade Pakistan’s sovereign rating by one level to Caa1 from Caa2, accompanied by a stable outlook. This decision, driven by enhanced external buffers, fiscal consolidation, and advancement in the IMF program, has significantly improved market sentiment.

In the preceding week, the PSX had reached an intraday high of 147,534 points before settling at 146,492 points, marking a weekly increase of 1,109 points, equivalent to 0.8%.

Global Markets Overview

Across the globe, Asian stock markets saw gains on Monday, anticipating key developments in US interest rate policy. Meanwhile, oil prices experienced a slight decrease as concerns about Russian supply disruptions eased.

A general appetite for risk propelled indices in Japan and Taiwan to new record highs, while Chinese blue-chip stocks achieved their highest levels in 10 months.

Reports indicate that US President Donald Trump and Moscow share similar views on pursuing a peace agreement with Ukraine, potentially bypassing an initial ceasefire, following a meeting with Russian President Vladimir Putin in Alaska on Friday.

Trump is scheduled to meet with Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to deliberate on subsequent actions, although specific proposals remain unclear.

The primary economic event of the week is the Kansas City Federal Reserve’s Jackson Hole symposium from August 21-23, where Chair Jerome Powell is expected to discuss the economic outlook and the central bank’s policy framework.

Market forecasts suggest an approximate 85% likelihood of a quarter-point rate cut during the Fed’s meeting on September 17, with expectations of further easing by December.

The anticipation of reduced borrowing costs worldwide has bolstered stock markets, with Japan’s Nikkei climbing 0.9% to reach a new record high.

MSCI’s broadest index of Asia-Pacific shares outside Japan saw a slight decrease, although it had reached a four-year high the previous week. Chinese blue chips rose by 1.0%, bringing their quarterly gains to nearly 8%.

EUROSTOXX 50 futures and FTSE futures both increased by 0.2%, while DAX futures saw a rise of 0.1%.

This information reflects an intra-day market update.