PSX KSE-100 Index Surpasses 125,000 Mark

The Pakistan Stock Exchange (PSX) maintained its positive trajectory as the benchmark KSE-100 index exceeded the 125,000 threshold, gaining over 800 points in early trading hours on Monday.

At approximately 9:45 am, the index reached 125,191.97, reflecting an increase of 812.91 points, equivalent to a 0.65% rise.

Substantial buying activity was evident across crucial sectors such as automobile manufacturing, cement, commercial banking, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Major stocks including ARL, HUBCO, MARI, OGDC, PPL, POL, PSO, and SSGC all showed positive movement.

During the preceding week, the PSX demonstrated exceptional performance, with the KSE-100 Index soaring by 4,355 points, or 3.6% week-on-week, to conclude at a record high of 124,379 points last Friday.

This significant surge was largely attributable to reduced geopolitical instability in the Middle East and the seamless approval of the federal budget in the National Assembly.

Globally, Asian markets experienced gains on Monday. Signs of advancement in trade discussions between the U.S. and Canada improved market sentiment, while the dollar value decreased amid concerns that U.S. employment data may reveal weaknesses justifying more aggressive interest rate cuts.

On Sunday, Canada removed its digital services tax to facilitate ongoing trade negotiations, responding to pressure from the U.S. President.

The aim is to finalize an agreement by July 21, extending the President’s initial deadline of July 9 for imposing retaliatory tariffs.

Authorities have indicated that the majority of agreements could potentially be completed by Labor Day on September 1.

Investors are also carefully monitoring the progress of a large U.S. tax reduction and spending bill currently under consideration in the Senate, with indications it might not be approved by the President’s preferred deadline of July 4.

The Congressional Budget Office has estimated that the bill would increase the national debt by $3.3 trillion, testing the international demand for U.S. Treasury bonds.

Demand remains strong for the U.S. tech sector and large-cap growth stocks, including Nvidia, Alphabet, and Amazon.

Nasdaq futures increased by 0.4%, while S&P 500 e-minis rose by 0.3%.

EUROSTOXX 50 futures were up by 0.2%, while FTSE futures remained stable and DAX futures increased by 0.3%.

This positive sentiment impacted Japan’s Nikkei, which increased by 1.6%, while South Korean stocks gained 0.8%. The MSCI index of Asia-Pacific shares excluding Japan decreased by 0.2%.

This information reflects an update during the trading day.