Bullish momentum was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index crossing the 146,000 level during the intra-day trading on Monday.
At 1:15pm, the benchmark index was hovering at 146,584.98 level, an increase of 1,202.19 points or 0.83%.
Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies and refinery traded in the green. Index-heavy stocks including ARL, NRL, MARI, POL, HBL, MCB, MEBL and UBL traded in the green.
Analysts attributed the positive momentum to several positive macroeconomic and corporate factors.
“The continuity of the IMF programme” is providing policy stability and ensuring the implementation of critical fiscal and structural reforms, Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder.
“This is complemented by a better external and fiscal account position.”
The market expert added that the investor sentiments are further bolstered by attractive valuations, making equities appealing compared to other asset classes, including real estate, which remains largely stagnant.
Moreover, strong corporate performance, with several listed companies reporting all-time high profits, is also adding to the momentum. “All this makes a very good ground for the ongoing rally,” he said.
During the previous week, PSX extended its winning streak with the benchmark KSE-100 Index surging by 4,348 points, or 3.1%, to close at an all-time high of 145,383.
Internationally, major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on US inflation would likely set the course of the dollar and bonds.
Trade and geopolitics also loom large with a US tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine.
The main economic release will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%.
An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number, given a downward turn in payrolls is now dominating the outlook.
Markets imply around a 90% probability of a September easing, and at least one more cut by year-end.
Trump’s pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders.
The prospect of lower borrowing costs has supported equities, along with a run of strong earnings.
This is an intra-day update
