KSE-100 Crosses 142,000 as Trade Deal Boosts Investor

PTBP Web Desk

The Pakistan Stock Exchange (PSX) continued its strong upward momentum on Monday, with the benchmark KSE-100 Index crossing the significant 142,000-point milestone during intra-day trading. As of 1:40 PM, the index was recorded at 142,117.00, marking a rise of 1,082.02 points or 0.77%, as investor confidence remained buoyant following a breakthrough trade agreement between Pakistan and the United States.

This surge highlights a positive shift in market sentiment, with investors showing renewed trust in Pakistan’s macroeconomic direction. The market rally, which began last week, gained further momentum as buying was observed across key sectors including commercial banking, oil and gas exploration, refinery, power generation, and oil marketing companies (OMCs).

Leading the charge were index-heavy stocks such as:

Attock Refinery Limited (ARL)
Mari Petroleum Company Limited (MARI)
Oil & Gas Development Company Limited (OGDC)
Pakistan Petroleum Limited (PPL)
Pakistan Oilfields Limited (POL)
Pakistan State Oil (PSO)
Wafi Energy
Habib Bank Limited (HBL)
Meezan Bank Limited (MEBL)
National Bank of Pakistan (NBP)

All these stocks traded in the green, contributing significantly to the KSE-100’s ascent.

Analysts at major brokerage houses attributed the rise to improving foreign sentiment, spurred by the newly signed US-Pakistan trade deal. The deal is expected to lower tariffs for Pakistani exports, enhancing market access and improving trade balances for the South Asian nation. This positive development has injected confidence into both local and foreign investors.

The bullish trend is not limited to just Monday. The PSX had already capped off a historic week previously, with the KSE-100 Index closing at an all-time high of 141,035 points, gaining 1.3% on a weekly basis. The market had also touched a record intraday high of 141,161 points, reflecting robust investor confidence.

This rally is being termed as a remarkable turnaround in sentiment, largely driven by:

The unexpected improvement in trade relations with the US
Growing optimism around Pakistan’s economic stability
Better-than-expected performance in key sectors

Internal political stability and assurances from the government regarding structural economic reforms have also contributed to the stock market recovery.

While Pakistan’s market flourished, global financial markets, especially in Asia and the United States, painted a less rosy picture.

On Monday, Asian stock markets mirrored the downward trend of Wall Street, reflecting renewed concerns over the US economy. The decline was largely triggered by the disappointing US July payroll report, which showed that payrolls were 290,000 lower than previously estimated.

Additionally, the three-month average for new payrolls fell to just 35,000, a sharp drop from 231,000 at the beginning of the year. This data has strengthened speculation that the Federal Reserve may cut interest rates as early as September.

However, confidence was further shaken by political developments, particularly President Donald Trump’s dismissal of the head of Labor Statistics, a move seen by many as undermining the credibility of economic data. Concerns also grew over Trump’s influence on Federal Reserve policy, as he is now expected to fill an important governorship role.

Despite these concerns, US stock futures showed limited recovery, with S&P 500 futures inching up by 0.1% and Nasdaq futures rising by 0.2%. Meanwhile, Asian stock indices reacted negatively, with Japan’s Nikkei dropping 2.1% and South Korea’s market dipping 0.2%. However, MSCI’s Asia-Pacific Index (excluding Japan) gained a modest 0.3%, defying the trend.

With the KSE-100 Index now firmly above the 142,000 mark, analysts expect the rally to continue in the short term, provided that: