PSX Sets New Record as Bullish Trend Continues

The Pakistan Stock Exchange (PSX) maintained its upward trajectory, with the KSE-100 index achieving a new all-time high at the close of business on Monday.

Throughout the day’s trading, positive momentum prevailed, propelling the KSE-100 Index to an intraday peak of 125,748.58.

At the session’s conclusion, the benchmark index reached 125,627.31, representing a gain of 1,248.25 points, or 1%.

Over the course of the previous week, the PSX demonstrated strong performance, as the KSE-100 Index surged by 4,355 points, equivalent to 3.6% on a week-on-week basis, culminating in a record high of 124,379 points last Friday.

This substantial upswing was largely attributable to a reduction in geopolitical instability in the Middle East and the seamless approval of the federal budget in the National Assembly.

In global markets, Asian shares experienced gains on Monday, fueled by encouraging signs of progress in trade discussions between the United States and Canada, which bolstered risk appetite. Meanwhile, the dollar weakened amid concerns that U.S. jobs data might reveal sufficient weakness to justify more aggressive interest rate cuts.

On Sunday, Canada announced the cancellation of its digital services tax in an effort to facilitate trade negotiations, yielding to pressure from President Donald Trump.

The objective of these discussions is to finalize an agreement by July 21, extending Trump’s initial deadline of July 9 for his “reciprocal” tariffs.

Officials have indicated that most agreements could potentially be reached by Labor Day on September 1.

Investors were also closely monitoring the advancement of a substantial U.S. tax reduction and spending bill as it progressed through the Senate, with indications suggesting it might not be finalized by Trump’s preferred deadline of July 4.

The Congressional Budget Office estimated that the bill would increase the national debt by $3.3 trillion, potentially affecting foreign demand for U.S. Treasuries.

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

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

EUROSTOXX 50 futures advanced by 0.2%, whereas FTSE futures remained stable, and DAX futures saw a gain of 0.3%.

This optimistic mood extended to Japan’s Nikkei, which increased by 1.6%, while South Korean stocks rose by 0.8%. MSCI’s broadest index of Asia-Pacific shares outside Japan decreased by 0.2%.