PSX Continues Bullish Momentum with Significant Gains

The Pakistan Stock Exchange (PSX) experienced a continuation of its positive trend, as the benchmark KSE-100 Index surged by almost 900 points in the initial trading hours on Monday.

At approximately 10:25 AM, the index reached a level of 141,899.90, marking an increase of 864.92 points, equivalent to a 0.61% rise.

Buying activity was prominent across key sectors, including commercial banks, oil and gas exploration firms, oil marketing companies (OMCs), power generation, and refineries. Major stocks like ARL, MARI, OGDC, PPL, POL, PSO, WAFI, HBL, MEBL, and NBP showed positive trading.

Market observers suggest that the buying surge reflects investor confidence following a trade agreement between the United States and Pakistan, which is expected to result in reduced tariffs for Pakistan.

During the preceding week, the PSX concluded a strong week, with the KSE-100 Index achieving a record high close of 141,035 points, representing a weekly increase of 1.3%.

The index also achieved a new intraday peak of 141,161 points, highlighting a significant shift in market sentiment, primarily boosted by advancements in trade relations with the United States and renewed investor optimism in Pakistan’s macroeconomic outlook.

Globally, Asian stock markets mirrored declines on Wall Street on Monday, driven by renewed concerns about the U.S. economy, leading investors to anticipate a likely rate cut in September and weakening the dollar.

Early stability in U.S. stock futures and a continued decline in oil prices helped mitigate some losses, but the negative implications of the July jobs report were evident.

Downward revisions indicated that payrolls were significantly below previous estimates, and the three-month average growth slowed considerably from the start of the year.

President Donald Trump’s reaction, including the dismissal of the head of Labor Statistics, further eroded confidence in U.S. economic data.

Similarly, news regarding a forthcoming governorship appointment at the Federal Reserve heightened concerns about the politicization of interest rate policy.

The potential for reduced borrowing costs provided some support for equities, with S&P 500 futures showing a slight increase, and Nasdaq futures also edging higher.

However, Asian markets were still responding to Friday’s downturn, with the Nikkei experiencing a notable drop, and South Korea also declining.

MSCI’s index of Asia-Pacific shares excluding Japan showed some resilience and posted a gain.

This information reflects an intra-day market update.