PSX opens strong as KSE-100 index surges nearly 900 points

The KSE-100 Index had climbed 875.56 points, or 0.47 percent, to reach 186,247.76 points, reflecting sustained buying interest across major sectors of the market.

Karachi: The Pakistan Stock Exchange (PSX) began the new trading week on a strong note, with investors maintaining a positive outlook as the benchmark KSE-100 Index recorded a sharp gain of nearly 900 points during the opening session on Monday.

By 9:33am, the KSE-100 Index had climbed 875.56 points, or 0.47 percent, to reach 186,247.76 points, reflecting sustained buying interest across major sectors of the market. The upbeat performance follows last week’s impressive rally, which was driven by improving macroeconomic indicators, easing geopolitical concerns, and declining global oil prices.

Broad-Based Buying Lifts Market

Trading activity remained strong across several heavyweight sectors, including automobile assemblers, cement manufacturers, commercial banks, fertilizer companies, oil and gas exploration firms, oil marketing companies (OMCs), and refineries.

Among the major contributors to the rally were index-heavy stocks such as Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Mari Energies (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), MCB Bank, Meezan Bank (MEBL), and National Bank of Pakistan (NBP), all of which traded in positive territory during early hours.

Market participants attributed the gains to renewed investor confidence supported by improving economic fundamentals and expectations of continued policy stability.

Previous Week Ends on a Bullish Note

The latest gains come after the PSX delivered another impressive performance last week. The benchmark KSE-100 Index advanced by more than 5,800 points, registering an increase of approximately 3.2 percent to settle at 185,372.20 points.

Analysts believe the market benefited from easing tensions in the Middle East, which reduced uncertainty in global financial markets. At the same time, lower international crude oil prices helped improve Pakistan’s inflation outlook, while encouraging domestic economic indicators further strengthened investor sentiment.

Global Markets Support Positive Momentum

International financial markets also provided support to investor confidence. Asian stock markets traded mostly higher on Monday, while U.S. stock futures pointed to a positive start on Wall Street as investors looked ahead to the upcoming corporate earnings season.

Global investors remained encouraged by expectations that leading multinational companies, particularly in the technology sector, would post strong quarterly earnings driven by continued demand for artificial intelligence (AI)-related products and services.

Oil Prices Continue to Ease

Global oil prices extended their decline after OPEC+ approved another increase in production targets for August, adding 188,000 barrels per day following similar increases announced for June and July.

Brent crude slipped around 0.6 percent to nearly four-month lows of about $71.70 per barrel, while U.S. West Texas Intermediate (WTI) crude declined approximately 0.5 percent to $68.38 per barrel.

Lower oil prices are generally viewed as positive for oil-importing countries such as Pakistan, as they help reduce import costs, ease inflationary pressures, and improve the country’s external account position.

Meanwhile, concerns over disruptions in the Strait of Hormuz continued to ease, with shipping traffic remaining largely uninterrupted despite the absence of significant progress in U.S.-Iran diplomatic negotiations.

Focus Shifts to Central Banks and Corporate Earnings

Investors are also closely watching developments in the United States, where expectations for an immediate interest rate increase by the Federal Reserve have weakened following softer-than-expected employment data and the recent decline in energy prices.

Market participants now expect the U.S. central bank to maintain its current policy stance at its upcoming meeting later this month. Attention will also turn to the release of the Federal Reserve’s latest meeting minutes, which could provide further insight into policymakers’ views on inflation and future monetary policy.

At the same time, the global earnings season is set to begin this week, with companies including Delta Air Lines and PepsiCo scheduled to announce quarterly results. Technology giant Samsung Electronics is also expected to report a significant increase in profits, highlighting the continued strength of the global AI-driven semiconductor industry.