PSX Rebounds with Significant Gains

Following a decline of over 800 points the previous day, the Pakistan Stock Exchange (PSX) saw a resurgence as the KSE-100 Index increased by more than 700 points in the early hours of trading on Tuesday.

As of 10:40 AM, the benchmark index stood at 119,578.51, reflecting a rise of 700.71 points, equivalent to a 0.59% gain.

Buying activity was prominent in key sectors, including cement, commercial banks, oil and gas exploration firms, OMCs, and power generation. Major stocks such as HUBCO, SNGPL, SSGC, OGDC, PPL, MCB, MEBL, and UBL all showed positive movement.

Positive Economic Outlook

In a noteworthy development, Prime Minister Shehbaz Sharif announced on Monday that discussions with the International Monetary Fund (IMF) regarding the upcoming federal budget had concluded successfully, paving the path for a new era of economic expansion.

During a discussion with a select group of journalists, the Prime Minister noted that the government had stabilized the economy and would now concentrate on sustainable growth.

Previous Day’s Market Performance

On Monday, the PSX experienced a turbulent session, with initial gains offset 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 conclude at 118,878 points.

Global Market Overview

In international markets, Asian shares saw modest gains on Tuesday, while the dollar hit a six-week low as unpredictable US trade policies created uncertainty and investors adopted a defensive stance ahead of crucial events later in the week.

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

The call between the two leaders will be closely monitored by markets, as trade tensions between the world’s two largest economies persist, to assess whether the tariff-related impact on global stocks and the dollar might ease or intensify.

Recent data revealed that US manufacturing contracted for the third consecutive month in May, and suppliers experienced the longest delivery times in nearly three years due to tariffs.

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

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 early losses to trade 0.6% higher, while Japan’s Nikkei increased by 0.66%.