PSX Climbs to Record High After Previous Day’s Dip

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 achieving a new peak of 120,450.

Throughout the trading session, vigorous buying activity propelled the KSE-100 Index to an intraday high of 120,693.83.

The benchmark index concluded the day at 120,450.87, marking an increase of 1,573.07 points, or 1.32%.

Waqas Ghani, Head of Research at JS Global, stated that market participants displayed optimism, encouraged by Prime Minister Shehbaz Sharif’s announcement of successful discussions with the International Monetary Fund (IMF) regarding the upcoming federal budget.

The Prime Minister had indicated on Monday that the successful conclusion of talks with the IMF concerning the upcoming federal budget sets the stage for a fresh phase of economic expansion.

Speaking to a select group of journalists, the premier noted that the government has stabilized the economy and will now prioritize sustained development.

Samiullah Tariq, Head of Research and Development at Pakistan Kuwait Investment Company (Private) Limited, commented that the government’s commitment to IMF-supported reforms has fostered sustainable economic advancement.

He further added that investor confidence is bolstered by sustained earnings momentum in key sectors and a more stable economic outlook.

Earlier in the week, the PSX experienced a volatile session, with initial gains eroded by substantial selling pressure later in the day, ultimately leading the benchmark index to close in negative territory.

The KSE-100 index decreased by 813.29 points, or 0.68%, to close at 118,878 points on Monday.

Globally, Asian markets saw cautious gains on Tuesday, while the dollar weakened to a six-week low amid uncertain US trade policies and investor caution ahead of significant events later in the week.

White House press secretary Karoline Leavitt announced that US President Donald Trump and Chinese President Xi Jinping are expected to communicate this week, following Trump’s accusations of China violating agreements on tariffs and trade restrictions.

The impending discussion between the two leaders is being closely monitored by markets, as trade tensions between the world’s two largest economies could either escalate or de-escalate, 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 delivery times in nearly three years due to tariffs.

The concerning global trade situation resulted in a decline in US futures during the early Asian session, failing to maintain the modest gains made on Wall Street overnight.

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

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