PSX Demonstrates Strong Bullish Trend with Significant Gains

The Pakistan Stock Exchange (PSX) experienced robust positive momentum as trading commenced, with the KSE-100 Index climbing by over 650 points during Monday’s early trading hours.

As of 10:25 am, the benchmark index stood at 122,805.64, reflecting an upswing of 662.08 points, equivalent to a 0.54% increase.

Notable purchasing activity was evident across pivotal sectors, including automobile manufacturers, commercial banking institutions, oil and gas exploration firms, oil marketing companies, and the power generation industry. Major stocks such as HUBCO, MARI, OGDC, PPL, POL, FFC, UBL, and MCB all showed positive movement.

Last week, the PSX navigated a period of volatility. An initial surge driven by budget optimism and anticipated monetary easing was quickly tempered by escalating geopolitical tensions in the Middle East. This prompted investors to secure profits and exercise greater caution.

The trading week began favorably, with the market reacting positively to the unveiling of the Rs17.3 trillion federal budget for FY26. The government’s decision to avoid introducing any unfavorable fiscal policies for capital markets, coupled with more favorable Capital Gains Tax (CGT) provisions than expected, encouraged mutual funds and institutional investors to allocate funds toward equities.

The KSE-100 Index concluded the previous week at 122,144 points, representing a modest week-on-week rise of 0.4%, or 502 points.

Globally, Asian markets remained resilient on Monday, and oil prices increased again as the conflict between Israel and Iran showed no signs of de-escalation, exacerbating geopolitical uncertainties amidst global economic challenges in a week marked by numerous central bank meetings.

Despite this, investor sentiment remained relatively stable, with calm currency markets and steady Wall Street stock futures after an initial dip.

Oil prices rose by 1%, adding to last week’s 13% surge, which could potentially fuel inflation. This inflationary pressure may reduce the likelihood of the Federal Reserve cutting interest rates at its upcoming meeting on Wednesday.

Current futures indicate a negligible chance of a rate reduction in the 4.25% to 4.5% range, with limited prospects for a move in July. Market participants will be closely monitoring any changes to the Fed’s “dot plot” projections for future rate adjustments.

Financial markets still anticipate two easing measures by December, with September being considered the most probable timing for the initial move.

Presently, investors are awaiting further developments, as MSCI’s broadest index of Asia-Pacific shares excluding Japan experienced a slight increase of 0.1%.

Japan’s Nikkei saw a rise of 0.8%, and South Korean stocks increased by 0.5%.

Chinese blue chips rose by 0.1%, with retail sales data for May indicating a 6.4% increase, surpassing forecasts, while industrial output aligned with expectations.

S&P 500 futures increased by 0.1%, and Nasdaq futures saw a gain of 0.2%, recovering from an earlier decline.

This report provides an intra-day market update.