Positive momentum continues at PSX, KSE-100 up over 1,400 points

Investor sentiments remained positive at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,400 points during the opening hours of trading on Monday.

At 11:24am, the benchmark index was hovering at 186,800.12, up by 1,427.92 points or 0.77%.

Buying was observed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, POL, PSO, MCB, MEBL and NBP, traded in the green.

During the previous week, the PSX extended its bullish momentum with the benchmark KSE-100 Index gaining more than three percent as easing geopolitical tensions in the Middle East, lower international oil prices and encouraging domestic macroeconomic indicators supported sentiment.

The benchmark KSE-100 Index climbed 5,800.93 points, or 3.2%, to close at 185,372.20 points.

Internationally, Asian share markets were mostly firmer on Monday, as Wall Street futures started the week with gains on hopes for an upbeat earnings season, ​while easing oil prices promised relief from inflationary pressures.

While there were no new developments in the fractious U.S.-Iran peace talks, ships ‌are passing through the Strait of Hormuz with 160 vessels reported from Monday to Saturday last week.

OPEC+ also agreed on a further increase in output targets by 188,000 barrels per day from August, on top of similar increases for June and July.

As a result, Brent slipped 0.6% to near four-month lows at $71.70 a barrel, and U.S. crude lost 0.5% to $68.38.

The cooling ​in energy costs, combined with a softer U.S. payrolls report, led markets to scale back the risk of a Federal Reserve rate hike in ​the near term, with futures implying a 78% chance of a steady outcome at the July 29 meeting.

Minutes of the ⁠Fed’s last meeting are due on Wednesday and should offer colour on the hawkish turn by some board members, though that preceded the recent slide ​in oil.

The diminished risk of a hike this month should allow investors to focus on the looming earnings season, where ​the AI boom is set to deliver bumper tech profits.

This week has just Delta Air Lines and PepsiCo as tasters, though Samsung Electronics is set to ​make a splash on Tuesday as analysts expect an 18-fold increase in profits.

The world’s largest memory chipmaker by sales is likely to flag an operating profit ‌of 86 ⁠trillion won ($56.35 billion) for the April to June quarter, according to an LSEG SmartEstimate.

South Korea’s red-hot market cooled a little last week but is still up 92% for the year so far as AI demand and tight supplies boost chip prices. The index added another 2.25% on Monday, while Japan’s Nikkei eased 0.1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%.

This is an intraday update