The Pakistan Stock Exchange (PSX) continued its positive momentum, fueled by increased political clarity, with the benchmark KSE-100 index gaining over 1.3% during Monday’s trading session.
By 1:25 pm, the benchmark index stood at 63,680.31, marking an impressive increase of 864.50 points, equivalent to over 1.38%.
Multiple sectors witnessed robust buying activity, particularly in auto, cement, and oil & gas sectors, which garnered significant attention. Notable index-heavy stocks like OGDC, PPL, and SNGPL performed well, contributing to the overall market uptrend.
Market experts attribute this surge in buying activity to the recent political developments, as provincial assemblies in Sindh and Punjab began forming, instilling confidence among investors and prompting a market rebound.
Additionally, the anticipation of strong corporate performance and positive economic developments further fueled the bullish momentum in the market.
Monday saw notable corporate announcements from companies like PPL and Engro, contributing to the overall market sentiment.
Internationally, Asian shares experienced a slight pause near seven-month highs on Monday, as investors awaited crucial inflation data from the United States, Japan, and Europe. This data is expected to refine expectations for future rate movements.
Of particular interest is the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures (PCE) price index, scheduled for release on Thursday. Forecasts indicate a potential rise of 0.4%, surpassing earlier expectations. High readings on consumer and producer prices suggest a possible outcome as high as 0.5%.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped by 0.3%, following a 1.7% climb last week to reach seven-month highs.
The previous week witnessed a bullish trend at the PSX, recording healthy gains driven by renewed investor interest following the agreement among major political parties to proceed with the formation of a coalition government. The benchmark KSE-100 index surged by 2,942.86 points on a week-on-week basis, closing at 62,815.82 points.
