KARACHI: The Pakistan Stock Exchange (PSX) opened the week on a bullish note, driven by anticipation of a policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting. The KSE-100 Index surged to 139,988.07 by 9:35am on Monday, up 780.79 points or 0.56%, inching closer to the key 140,000 mark.
The rally was broad-based, with strong buying observed in automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and refineries. Major index movers such as PRL, ARL, MARI, OGDC, PPL, POL, PSO, SSGC, and SNGPL all traded in the green.
Despite being range-bound last week, the KSE-100 still managed to post a gain of 610 points (0.44% WoW), closing at 139,207 as investors remained cautiously optimistic over macroeconomic cues and potential monetary easing.
On the global front, investor sentiment improved after the United States and the European Union reached a framework trade deal. The US imposed a 15% tariff on most EU goods—lower than the previously threatened 30%—and had also struck a similar agreement with Japan earlier.
Markets responded positively to the clarity:
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S&P 500 futures rose 0.4%
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Nasdaq futures climbed 0.5%
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Euro strengthened against major currencies
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European futures jumped nearly 1%
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MSCI Asia-Pacific index (excluding Japan) increased by 0.27%
However, Japan’s Nikkei slipped 0.8% after a one-year high last week.
PSX Retreats After Hitting 140,200 as Investors Lock In Profits
As the August 1 deadline set by US President Donald Trump approaches, countries are scrambling to secure favorable trade terms. Talks between the US and China resumed in Stockholm, with expectations of a 90-day extension to their trade truce.
With both domestic and international developments leaning positive, investors at the PSX appear hopeful for sustained market momentum—especially if the anticipated rate cut materializes in the MPC’s upcoming announcement.
