PSX Bounces Back with Substantial Gains

Following a decline of over 800 points the previous day, the Pakistan Stock Exchange (PSX) experienced a resurgence on Tuesday, with the KSE-100 Index soaring by over 900 points during the day’s trading session.

As of 11:30 am, the benchmark index stood at 119,799.31, marking an increase of 921.51 points, which translates to a 0.78% rise.

Investors showed keen interest in key sectors such as cement, commercial banks, oil and gas exploration firms, OMCs, and power generation companies. Major stocks including HUBCO, SNGPL, SSGC, OGDC, PPL, MCB, MEBL, and UBL all demonstrated positive trading activity.

Positive Economic Outlook

A significant development came on Monday when Prime Minister Shehbaz Sharif announced the successful conclusion of discussions with the International Monetary Fund (IMF) regarding the upcoming federal budget, paving the way for potential economic expansion.

During an interaction with journalists, the Prime Minister stated that the government has stabilized the economy and will now prioritize sustainable development efforts.

Previous Day’s Market Performance

The PSX had a turbulent session on Monday, the first trading day of the week. Initial gains were offset by significant selling pressure later in the day, leading to a negative closing for the benchmark index.

The KSE-100 index closed at 118,878 points, a decrease of 813.29 points or 0.68%.

Global Market Overview

Asian markets displayed cautious gains on Tuesday, while the dollar weakened to a six-week low as uncertain US trade policies cast a shadow over markets. Investors adopted a defensive stance in anticipation of important developments later in the week.

US President Donald Trump and Chinese leader Xi Jinping are expected to communicate this week, according to White House press secretary Karoline Leavitt. This follows Trump’s accusations that China violated an agreement to reduce tariffs and trade restrictions.

The anticipated discussion between the two leaders will be closely monitored by markets for any signs of easing trade tensions between the world’s two largest economies, which have been impacting global stocks and the dollar.

Recent data indicated that US manufacturing contracted for the third consecutive month in May, with suppliers experiencing the longest delays in nearly three years due to tariffs.

The subdued global trade environment caused US futures to decline early in the Asian session, failing to maintain the minor gains achieved on Wall Street overnight.

Nasdaq futures and S&P 500 futures both fell by 0.2%. In Europe, EUROSTOXX 50 futures rose by 0.28%, and FTSE futures increased by 0.15%.

MSCI’s broadest index of Asia-Pacific shares outside Japan reversed earlier losses to trade 0.6% higher, while Japan’s Nikkei increased by 0.66%.