PSX rallies above 181,000 as investors return to key sectors

Positive momentum returned to the Pakistan Stock Exchange (PSX) on Monday as investors stepped up buying activity across major sectors, pushing the benchmark KSE-100 Index above the 181,000-point mark

KARACHI: Positive momentum returned to the Pakistan Stock Exchange (PSX) on Monday as investors stepped up buying activity across major sectors, pushing the benchmark KSE-100 Index above the 181,000-point mark during the opening phase of trading.

At around 9:40am, the benchmark index was trading at 181,066.59 points, showing an increase of 961.98 points, or 0.53%, compared with the previous close.

The early-session recovery reflected renewed investor interest in large-cap and index-heavy companies. Buying was particularly visible across automobile assemblers, cement, commercial banking, fertiliser, oil and gas exploration, oil marketing companies (OMCs), power generation and refinery sectors.

Among the major stocks supporting the upward movement were Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Hub Power Company (HUBCO), Habib Bank Limited (HBL), MCB Bank, Meezan Bank Limited (MEBL) and United Bank Limited (UBL). Most of these index-heavy shares traded in positive territory during the initial hours.

The recovery came after a difficult week for the domestic equity market. The KSE-100 Index had closed the previous week at 180,104.61 points, declining by 1,325.41 points, or 0.7% on a week-on-week basis.

Market sentiment had been affected by heightened geopolitical uncertainty, particularly concerns over the future of the US-Iran ceasefire and the potential impact of regional tensions on international energy supplies. Investors also remained cautious over developments affecting shipping activity around the Strait of Hormuz and the Red Sea, both of which are critical routes for global energy and trade.

Despite the pressure on equities, Pakistan’s domestic fiscal position and external-sector indicators had provided some support to investor confidence. However, geopolitical developments continued to dominate trading decisions, particularly because any prolonged disruption to oil supplies could raise import costs and increase inflationary pressures.

Global markets remain cautious

The cautious mood was also evident across international markets on Monday. Asian equities moved largely sideways as investors monitored developments in the Middle East and assessed the implications for energy prices and global inflation.

Oil prices recorded significant gains during the previous week as uncertainty surrounding efforts to end the Iran conflict increased concerns about potential supply disruptions. Investors remained particularly focused on developments concerning the strategic Strait of Hormuz, where tanker traffic had remained disrupted amid the continuing tensions.

Iran on Saturday called on the United States to acknowledge defeat, while US President Donald Trump warned Americans that higher gasoline prices could persist as long as the conflict continued.

The situation in the wider region also remained volatile. In southern Lebanon, Israeli strikes on Saturday killed at least 11 people, according to the Lebanese health ministry. The casualties came amid renewed tensions following an earlier US-mediated framework aimed at easing hostilities between Lebanon and Israel.

Oil prices remain elevated

Crude oil prices remained at elevated levels on Monday after recording strong gains during the previous week.

Brent crude was trading around $88.50 per barrel, little changed during the session after climbing approximately 6% last week. Meanwhile, US West Texas Intermediate (WTI) crude slipped around 0.3% to $82.12 per barrel, following a weekly gain of about 5.4%.

Higher international oil prices remain a key concern for oil-importing economies such as Pakistan because a sustained increase can widen the import bill, put pressure on the current account and contribute to domestic inflation.

For investors at the PSX, developments in global energy markets are particularly important because oil and gas companies have significant representation in the benchmark index, while higher fuel costs can also affect the profitability of other industries.

Asian equities mixed

In regional markets, MSCI’s broadest index of Asia-Pacific shares outside Japan was broadly flat on Monday. Japan’s Nikkei 225, meanwhile, gained around 0.4%.

The mixed performance reflected investor caution as markets continued to assess the potential economic consequences of prolonged geopolitical tensions. Concerns over energy prices, inflation and interest-rate expectations remained central to global market sentiment.

At the PSX, however, the strong opening suggested that domestic investors were willing to look beyond short-term geopolitical concerns and accumulate fundamentally strong stocks. Whether the KSE-100 can sustain its early gains will depend on developments in global oil markets, regional tensions and trading activity in heavyweight sectors as the session progresses.