PSX Closes Flat Amid Budget Anticipation

The Pakistan Stock Exchange (PSX) exhibited minimal movement as investors adopted a cautious stance in anticipation of the fiscal year 2026 budget. The KSE-100 Index concluded the trading session on Tuesday with a modest increase of just over 100 points.

At the closing bell, the benchmark KSE-100 index reached 118,332.90, reflecting a gain of 111.78 points, equivalent to a 0.09% rise.

According to Ismail Iqbal Securities, market sentiment was predominantly characterized by a ‘wait-and-see’ attitude, with most participants remaining on the sidelines due to a lack of significant market-moving catalysts.

On the preceding Monday, the KSE-100 index experienced a sharp decline as investors responded to the budget postponement and uncertainties regarding the IMF’s approval of the circular debt management plan. The benchmark index had decreased by 881.55 points, or 0.74%, ultimately closing at 118,221 points.

Global Market Overview

Across international markets, Asian shares generally weakened on Tuesday. However, US futures showed gains after President Trump deferred the imposition of a 50% tariff on shipments from the European Union. Simultaneously, the US dollar was on track for its fifth consecutive month of decline.

In Japan, yields on super-long government bonds experienced a decrease early in the trading day, recovering from recent highs following a significant sell-off in bonds last week.

With US markets closed on Monday due to a holiday, overnight trading activity was subdued. Investors reacted to the optimism generated by Trump’s decision to postpone tariffs on EU imports, extending the deadline to July 9.

Nasdaq futures increased by 1.26% in Asia, while S&P 500 futures also rose by 1.11%. FTSE futures showed a gain of 0.94%. Markets in the UK were also closed on Monday.

Nvidia’s earnings report is scheduled for release on Wednesday, with expectations of a 65.9% surge in first-quarter revenue.

The MSCI index of Asia-Pacific shares excluding Japan experienced a decrease of 0.17%, and Japan’s Nikkei also declined by 0.15%.

China’s CSI300 blue-chip index saw a slight decrease of 0.06%, while the Shanghai Composite Index remained relatively unchanged. Hong Kong’s Hang Seng Index experienced a minor dip of 0.1%.

This week, investors will closely monitor speeches from various Federal Reserve policymakers and the US core PCE price index on Friday for insights into the future direction of US interest rates.