PSX Rebounds with Significant Gains

Following a decline of over 800 points the previous day, the Pakistan Stock Exchange (PSX) saw a resurgence on Tuesday, with the KSE-100 Index soaring by almost 1,500 points during the day’s trading session.

As of 2:15 pm, the benchmark index stood at 120,366.28, reflecting an increase of 1,488.48 points, which translates to a gain of 1.25%.

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

Positive Economic Outlook

A noteworthy development occurred when Prime Minister Shehbaz Sharif announced on Monday that discussions with the International Monetary Fund (IMF) regarding the upcoming federal budget had been successful, which could lead to a new era of economic expansion.

The Prime Minister mentioned in an interaction with journalists that the government has achieved economic stability and will now prioritize sustainable development.

Previous Day’s Market Performance

On Monday, the PSX experienced volatility during the first trading day of the week. Initial gains were offset by substantial selling pressure later in the session, causing the benchmark index to close in negative territory.

The KSE-100 index decreased by 813.29 points, or 0.68%, settling at 118,878 points.

Global Market Overview

Asian markets saw cautious gains on Tuesday, while the dollar weakened to a six-week low. Uncertain US trade policies and anticipation of key developments later in the week influenced market sentiment.

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

The discussions between the two leaders will be closely monitored by investors, who are hoping for a resolution to the trade tensions between the world’s two largest economies that have impacted global stocks and the dollar.

Recent data indicated that US manufacturing contracted for the third consecutive month in May. Additionally, suppliers experienced the longest delays in nearly three years to deliver inputs, influenced by tariffs.

The challenging global trade landscape resulted in a decline in US futures during the Asian session, offsetting minor gains made overnight on Wall Street.

Nasdaq futures and S&P 500 futures both decreased 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 recovered from earlier losses to trade 0.6% higher, while Japan’s Nikkei advanced by 0.66%.