The Pakistan Stock Exchange (PSX) continued its upward momentum on Monday, with the KSE-100 Index hitting a new record high, signaling sustained investor confidence amid improved macroeconomic indicators. The benchmark index surged past the 136,000 mark, reaching an intraday peak of 136,841.49 points, before closing at 136,502.53, registering a notable gain of 2,202.77 points, or 1.64%.
This significant growth reinforces the positive sentiment prevailing in the local equity market and underscores the business community’s faith in Pakistan’s economic recovery, particularly under the current government.
The bullish momentum was underpinned by strong buying activity in several key sectors. Major contributions came from:
- Automobile assemblers
- Cement manufacturers
- Commercial banks
- Oil and gas exploration companies
- Oil Marketing Companies (OMCs)
- Refinery stocks
Index-heavy stocks traded predominantly in the green, with notable gains recorded in Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), Sui Southern Gas Company (SSGC), Meezan Bank (MEBL), National Bank of Pakistan (NBP), and United Bank Limited (UBL).
These movements reflect broad-based investor interest, particularly in sectors linked to Pakistan’s industrial and energy output, highlighting confidence in both the corporate earnings outlook and the broader economic environment.
Prime Minister Shehbaz Sharif welcomed the PSX’s historic performance. According to a statement issued by the Prime Minister’s Office (PMO), the premier said that the rally in the stock market reflects the growing trust of the business community in the country’s economic policies.
“The upward trend in the PSX is the result of our government’s sound fiscal strategy and commitment to macroeconomic stability,” the Prime Minister said. He emphasized that such milestones validate the direction of the government’s economic management.
Market analysts have pointed to several key drivers behind the rally. According to Sana Tawfik, Head of Research at Arif Habib Limited (AHL), the rally is supported by:
- Record-high remittances collected in the last fiscal year
- Sustained foreign inflows into the capital market
- The beginning of the corporate result season, which investors are closely monitoring for earnings surprises
“Result season has kicked off, and investor focus will now also shift to company performance, which could further drive market sentiment,” Tawfik told Business Recorder.
The strong performance on Monday followed an already bullish week at the PSX. During the previous week, the KSE-100 Index recorded a sharp gain of 2,351 points, or 1.8% on a week-on-week basis, closing at a then-record of 134,299.77 points.
This trend has been consistent in recent months, as local and foreign investors show renewed interest in Pakistani equities, encouraged by the country’s improving economic outlook and increasing stability in both fiscal and monetary policy.
While the PSX soared, global equity markets had a mixed start to the week. Wall Street and European share futures dipped slightly, pulling down Asian indices, as uncertainty over new US tariffs rattled investor sentiment.
US President Donald Trump announced on Saturday his intent to impose a 30% tariff on most imports from the EU and Mexico, effective August 1. Although markets suspect this may be political posturing ahead of elections, the news created ripples across trading desks.
The European Union responded cautiously, indicating it would extend suspension of countermeasures until early August in the hope of a negotiated settlement. However, Germany’s finance minister called for a firm stance if the US proceeds with the new levies.
In Asia:
- MSCI’s Asia-Pacific index (excluding Japan) remained flat
- Japan’s Nikkei slipped by 0.3%
- Chinese blue-chip stocks edged up by 0.3%, following better-than-expected export data
According to official figures, China’s annual export growth reached 5.8% in June, although exports to the US declined nearly 10%.
Investors are now watching closely for more data from China, including figures on retail sales, industrial output, and GDP, which are expected to be released on Tuesday.
As the PSX continues to hit record highs, market participants remain optimistic. The combination of economic reforms, rising remittances, and foreign portfolio investment are likely to keep the momentum going, especially if the result season produces positive surprises.
The government’s continued commitment to fiscal discipline, structural reforms, and investment-friendly policies will play a key role in sustaining the bullish trend. However, market watchers advise caution, noting that profit-taking, global geopolitical shifts, or delays in structural reforms could introduce volatility.
