PSX KSE-100 Index Surges in Early Trading

The Pakistan Stock Exchange (PSX) experienced a robust start to the week, marked by substantial buying activity. The benchmark KSE-100 Index soared by over 1,100 points during Monday’s intraday session.

At approximately 10:15 am, the KSE-100 Index was recorded at 116,583.23, reflecting an increase of 1,113.89 points, which is equivalent to a 0.96% rise compared to the previous day’s closing figure.

On the preceding Friday, the KSE-100 Index concluded the trading day at 115,469.35.

Elevated tensions between Pakistan and India, sparked by the Pahalgam incident, had exerted downward pressure on the stock market, resulting in a 1.57% decline in the KSE-100 last week.

Analysis of Market Trends

According to a report from Topline, the past week’s downturn was influenced by cross-border tensions with India and the futures rollover week. Additional developments during the week included an agreement between Pakistan and two foreign commercial banks for a $1 billion loan, carrying an interest rate of about 7.6%. Furthermore, the government decided to procure debt from the domestic capital market by introducing Pakistan’s inaugural sustainable investment asset-backed Sukuk bonds. These bonds aim to finance three clean energy projects, which require an additional Rs52 billion to be finalized.

Relations between Pakistan and India have deteriorated significantly, with New Delhi accusing Islamabad of backing cross-border terrorism. This accusation followed an attack on civilians in Indian Illegally Occupied Jammu and Kashmir (IIOJK). Pakistan has refuted these accusations.

In response, both countries implemented various measures, with India pausing a crucial river water-sharing treaty and Pakistan restricting its airspace to Indian airlines.

Across Asia, share markets and the dollar initiated the week cautiously amid uncertainty surrounding US trade policy. This week is anticipated to be eventful, featuring significant economic data releases and major tech earnings reports.

Despite claims from US President Donald Trump regarding progress in trade negotiations with China and other nations, tangible evidence remains limited. Treasury Secretary Scott Bessent did not support Trump’s assertions about ongoing tariff discussions with China during a recent interview.

Christian Keller, Head of Economics Research at Barclays, noted that the prevailing uncertainty is as detrimental as the tariffs themselves, adversely affecting the US economy and the global market. He further cautioned that even if the current earnings season displays strong figures, many companies will likely adopt a defensive stance until market visibility improves, potentially increasing the likelihood of a recession.

Early market activity was subdued, with MSCI’s index of Asia-Pacific shares (excluding Japan) slightly increasing by 0.1%. Japan’s Nikkei index rose by 0.9%, while South Korea experienced a 0.2% gain.

This is an intra-day report.