PTBP Web Desk
The Pakistan Stock Exchange (PSX) witnessed strong bullish momentum on Monday as the benchmark KSE-100 Index surged past the 146,000 mark in early trading, driven by heavy buying in key sectors such as commercial banking, oil and gas, and automobile manufacturing.
At 11:25 am, the benchmark index stood at 146,093.57 points, marking an impressive gain of 710.78 points or 0.49% from the previous close. The rally reflected continued investor confidence following last week’s historic market performance.
Buying pressure was particularly strong in index-heavy stocks, with notable gains seen in Attock Refinery Limited (ARL), National Refinery Limited (NRL), Mari Petroleum Company Limited (MARI), Pakistan Oilfields Limited (POL), Habib Bank Limited (HBL), MCB Bank Limited (MCB), Meezan Bank Limited (MEBL), and United Bank Limited (UBL).
Sectors leading the upward trend included:
- Automobile Assemblers – driven by optimism over potential policy incentives for the industry.
- Commercial Banks – benefiting from expectations of strong half-yearly earnings.
- Oil and Gas Exploration – buoyed by rising global oil prices.
- Refineries – supported by favorable refining margins.
The bullish momentum follows a record-breaking performance last week when the KSE-100 Index gained 4,348 points or 3.1%, closing at an all-time high of 145,383 points. Market analysts attributed the surge to a combination of foreign portfolio inflows, stability in the rupee, and anticipation of policy continuity from the government.
The positive sentiment in Pakistan’s equity market was also in line with regional trends, as major stock indexes across Asia edged higher on Monday. Strong earnings in the technology sector boosted valuations, while investors awaited key US economic data that could determine the direction of global interest rates.
Internationally, investors were focused on several critical developments:
- US Inflation Report – Scheduled for release on Tuesday, the US Consumer Price Index (CPI) is expected to show a 0.3% monthly increase, bringing the annual core inflation rate to 3.0%, above the Federal Reserve’s 2% target.
- US-China Tariff Deadline – A tariff deadline is set to expire on Tuesday, with widespread expectations of another extension.
- US-Russia Talks – US President Donald Trump is set to meet Russian President Vladimir Putin in Alaska on Friday to discuss the Ukraine conflict.
Market analysts suggest that an upside surprise in the US inflation figures could influence expectations for the Federal Reserve’s next interest rate move. Although markets currently assign a 90% probability to a September rate cut, a significantly higher inflation number could delay the move.
At the same time, the recent downturn in US payroll numbers is leading many analysts to maintain their expectations of at least one more rate cut by year-end, which could further support global equity markets, including emerging markets like Pakistan.
The selection process for the next US Federal Reserve Chair remains ongoing, with about 10 contenders reportedly in the running. President Trump’s nominee for Fed governor, Stephen Miran, may or may not be confirmed in time to vote on the September rate decision.
Lower borrowing costs, combined with strong earnings reports from various sectors, have been a key driver of global stock market gains. This optimism has spilled over to Pakistan’s stock market, where investors are positioning themselves ahead of potential corporate earnings announcements in the coming weeks.
Analysts believe the KSE-100 Index could maintain its upward trajectory if macroeconomic stability persists and foreign investment inflows continue. They also highlight that sector rotation—where investors move capital between sectors depending on performance—has been a noticeable feature of recent trading sessions.
While the market outlook remains positive, experts caution that any unexpected geopolitical developments, sharp currency fluctuations, or policy reversals could impact investor sentiment.
