Optimism Fuels Pakistan Stock Exchange

The Pakistan Stock Exchange (PSX) experienced positive momentum as investors anticipate a potential reduction in the policy rate during the forthcoming Monetary Policy Committee (MPC) meeting. The KSE-100 Index approached the 140,000 mark in the initial trading minutes on Monday.

As of 9:35 am, the benchmark index stood at 139,988.07, reflecting a gain of 780.79 points, which translates to a 0.56% increase.

Sector Performance

Buying activity was evident across several key sectors, including automobile manufacturers, commercial banks, oil and gas exploration firms, oil marketing companies (OMCs), and refineries, all of which showed positive trading activity. Major stocks influencing the index, such as PRL, ARL, MARI, OGDC, PPL, POL, PSO, SSGC, and SNGPL, also traded positively.

Previous Week’s Market Activity

During the prior week, the market moved within a limited range but concluded on a high note. Investors considered macroeconomic indicators, expected monetary easing, and company earnings. The KSE-100 Index increased by 610 points, or 0.44% week-on-week (WoW), closing at 139,207 points.

Global Market Overview

Globally, stock values increased, and the euro strengthened on Monday following a trade agreement between the United States and the European Union, which improved market confidence. This occurred amidst significant policy meetings scheduled by the Federal Reserve and the Bank of Japan this week.

US Trade Agreements

The United States finalized a trade framework with the European Union, setting a 15% import tariff on the majority of EU goods. This is half the initially proposed rate, following a trade agreement with Japan the prior week that reduced planned tariffs on automobile imports.

Nations are working to finalize trade agreements before an August 1 deadline set by US President Donald Trump. Discussions between the US and China are scheduled for Monday in Stockholm, with expectations of another 90-day extension to the truce between the world’s two largest economies.

S&P 500 futures rose 0.4%, and Nasdaq futures increased by 0.5%. The euro gained strength against the dollar, sterling, and yen. European futures showed a surge of almost 1%.

MSCI’s broadest index of Asia-Pacific shares excluding Japan rose by 0.27%, nearing the almost four-year high it reached the previous week. Japan’s Nikkei decreased by 0.8% after hitting a one-year peak last week.

While the standard 15% tariff might still be considered high by many in Europe compared to initial hopes for a zero-for-zero tariff deal, it is preferable to the threatened 30% rate.

This information reflects intraday trading activity.