PSX Breaches 120,000-Level as Bulls Dominate Trading Floor
The Pakistan Stock Exchange (PSX) witnessed renewed bullish sentiment on Monday, with the KSE-100 Index soaring past the psychological 120,000 mark, adding over 600 points in early trade.
As of 1:35 PM, the benchmark index stood at 120,326.81, reflecting a gain of 635.72 points or 0.53% — a continuation of the upward momentum seen during the previous week’s mild recovery.
Key Drivers of the Rally
Market momentum was underpinned by broad-based buying in key sectors:
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Cement
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Commercial Banks
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Fertilizers
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Oil and Gas Exploration Companies (OGECs)
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Oil Marketing Companies (OMCs)
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Refineries
Notable gainers included index-heavyweights such as:
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PRL (Pakistan Refinery Limited)
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HUBCO (Hub Power Company)
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PSO (Pakistan State Oil)
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SNGPL (Sui Northern Gas Pipelines Limited)
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MARI, OGDC, POL, PPL
These stocks traded firmly in the green, reflecting investor optimism in sectors likely to benefit from ongoing macroeconomic adjustments, energy transition, and public development spending in the upcoming FY26 federal budget.
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Market Recap: Last Week’s Close
The PSX ended last week (May 30) on a positive note, gaining 588 points (0.49%) on a weekly basis to settle at 119,691 points — a reflection of renewed investor confidence amid:
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Greater clarity around macroeconomic policy direction
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Optimism ahead of the IMF programme continuity
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Anticipation of market-supportive measures in the Budget 2025-26
However, pre-budget jitters around potential tax hikes kept gains modest, with market participants remaining cautiously optimistic.
Global Markets Stay Defensive as Geopolitical Risks Rise
In contrast to the upbeat tone at the PSX, global equity markets started the week on a softer footing, reacting to US-China trade tensions and caution ahead of:
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US jobs data
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A widely anticipated rate cut by the European Central Bank
Highlights:
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MSCI Asia-Pacific ex-Japan Index: Flat
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Japan’s Nikkei: Down 1.4%
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Hong Kong Hang Seng: Down 2.5%
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South Korea KOSPI: Up 0.2% (on snap election hopes)
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EUROSTOXX 50 Futures: Down 0.2%
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S&P 500 Futures: Down 0.4%
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Nasdaq Futures: Down 0.5%
Meanwhile, the US Dollar weakened slightly, while commodities and bond markets stayed in tight ranges.
PSX Continues Upward Momentum Amid Global Market Volatility
The Trump Factor: Will Tariffs Shake Markets?
The geopolitical narrative remains tense after former US President Donald Trump threatened to double tariffs on steel and aluminium to 50%, effective June 4. The move:
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Provoked backlash from EU officials
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Drew rejection from China, further delaying diplomatic engagement
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Was downplayed by US Treasury Secretary Scott Bessent, who claimed talks with China would resume soon
Markets will closely watch if Trump follows through or backtracks, as his unpredictability has historically roiled global sentiment.
Outlook: PSX Resilient But Eyes Budget
While global caution prevails, Pakistan’s domestic equity market continues to outperform — buoyed by improving inflation trends, declining interest rates, and hopes of fiscal discipline in Budget FY26.
Investors should remain alert to:
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Budget proposals next week
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Any new taxes on capital markets or sectors like banks, fertilizer, and energy
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Movement in the rupee and oil prices
Today’s surge reflects confidence, but policy execution and budget clarity will determine whether the 120,000-level becomes a floor or a ceiling.
