Positive momentum continues at PSX, KSE-100 gains over 1.1%

The Pakistan Stock Exchange (PSX) extended its upward momentum on Monday, with the benchmark KSE-100 Index closing the day with a gain of nearly 2,100 points.

The market opened on a strong note and quickly climbed above the 186,500-point level before witnessing some profit-taking during late morning trade. However, the selling pressure remained limited, allowing the index to maintain its gains.

After consolidating around the 186,700–186,900 range for much of the mid-day session, buying interest strengthened in the afternoon. The market subsequently regained momentum as investors returned to buying, reflecting strong underlying sentiment.

At close, the benchmark index settled at 187,454.69, up by 2,082.49 points or 1.12%.

“Investor confidence remained resilient, supported by broad-based buying across key sectors, which helped sustain the market’s bullish momentum. The strong start to the week reflects continued optimism among market participants, driving the benchmark index to yet another record close,” brokerage house Topline Securities said in its post-market report.

“Adding to the positive sentiment, international crude oil prices softened, with WTI hovering around $68 per barrel, easing concerns over Pakistan’s import bill and inflation outlook. Meanwhile, aggressive institutional accumulation further reinforced the rally, allowing the benchmark index to extend its record-setting run.”

On the index contribution front, heavyweight stocks HBL, MEBL, NBP, LUCK, and MARI emerged as the top performers, collectively contributing 827 points to the benchmark index’s gain, Topline said.

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 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 US 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%.

Meanwhile, the Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 278.11, a gain of Re0.01 against the greenback.

Volume on the all-share index rose to 888.40 million from 815.65 million recorded in the previous close.

The value of shares increased to Rs49.98 billion from Rs42.63 billion in the previous session.

TPL Properties was the volume leader with 66.77 million shares, followed by Lotte Chemical with 42.07 million shares, and TPL REIT Fund I with 36.54 million shares.

Shares of 495 companies were traded on Monday, of which 296 registered an increase, 182 recorded a fall, and 17 remained unchanged.