KSE-100 index gains over 800 points as buying interest returns to PSX

Buying activity returned to the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index advancing more than 800 points during early trading as investors showed renewed interest across

KARACHI: Buying activity returned to the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index advancing more than 800 points during early trading as investors showed renewed interest across several major sectors.

At around 10:44am, the benchmark index was trading at 177,983.43 points, recording a gain of 816.91 points, or 0.46%, compared with the previous close.

The positive momentum was supported by buying in several key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, power generation firms and refineries.

Several heavyweight stocks also remained in positive territory and contributed to the index’s upward movement. Among the prominent gainers were HUBCO, Attock Refinery (ARL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), MCB Bank, Meezan Bank (MEBL) and United Bank Limited (UBL).

The recovery comes after a difficult week for the domestic equity market, during which investors remained cautious amid heightened political and geopolitical uncertainty. Concerns surrounding developments in the Strait of Hormuz, combined with a sharp increase in international oil prices, added to pressure on market sentiment.

During the previous week, the KSE-100 Index started trading at 180,104.61 points but ended at 177,166.52 points, losing 2,938.09 points, or 1.6%, on a week-on-week basis.

Global markets remain cautious

The trend in Pakistan was also being watched against a subdued international market environment. Asian equities remained largely range-bound on Monday, while oil prices eased as investors waited for further details regarding potential US sanctions on Iran.

The possibility of additional sanctions has kept energy markets on edge, with investors assessing their potential impact on global oil supplies and regional trade routes. At the same time, concerns over international trade tensions continued to influence currency and equity markets.

The Canadian dollar also weakened as investors monitored the possibility of another escalation in trade tensions between Canada and the United States.

Nvidia results in focus

Global investors are also turning their attention to Nvidia’s upcoming earnings report, due later in the week. The chipmaker’s results are expected to be closely watched because of the exceptionally high expectations surrounding the artificial intelligence-driven technology sector.

Analysts are reportedly expecting Nvidia’s quarterly revenue to approach $92 billion, representing a near doubling from the corresponding period. Full-year earnings expectations are also estimated at around $103 billion to $105 billion.

The results could have a broader impact on technology stocks and investor sentiment, particularly given Nvidia’s importance to the global AI investment cycle.

Fed policy outlook under scrutiny

Investors are also awaiting signals about the future direction of US monetary policy. Federal Reserve Chairman Kevin Warsh is scheduled to speak in Jackson Hole, Wyoming, later this week, with markets looking for clues about the central bank’s approach to interest rates.

Market expectations currently point to a possibility of a rate increase at the Federal Reserve’s September 16 meeting, while a move by December is being fully priced in by financial markets. However, expectations could shift depending on upcoming US economic data.

Inflation figures due this week are expected to provide additional guidance. Analysts’ median forecasts suggest that US core inflation could remain around 3.3% in July, although any significant deviation from expectations could influence bond yields, currencies and global equities.

Asian stocks mixed

Asian equity markets were largely subdued in early trading. Japan’s Nikkei index remained close to flat after suffering a decline of almost 4% during the previous week.

South Korean stocks fell around 0.8%, while Taiwan’s market declined approximately 0.5%.

Meanwhile, MSCI’s broadest index of Asia-Pacific shares excluding Japan slipped about 0.2%, reflecting a cautious approach among investors ahead of major corporate earnings and economic developments.