PSX Surges as Market Sentiment Rebounds; KSE-100 Gains Nearly 1,000 Points
The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Monday as the benchmark KSE-100 Index surged nearly 1,000 points during intra-day trading, reflecting renewed investor confidence.
As of 12:50 PM, the index was trading at 115,837.42, up 984.09 points or 0.86%, reversing the downward trend seen last week.
Broad-Based Buying Across Key Sectors
Investor interest returned to several major sectors, driving the rally. Strong buying was recorded in:
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Automobile Assemblers
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Cement
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Commercial Banks
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Oil & Gas Exploration Companies
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Oil Marketing Companies (OMCs)
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Power Generation & Distribution
Blue-chip and index-heavy stocks such as HUBCO, SNGPL, OGDC, PPL, POL, HBL, MCB, and UBL traded firmly in the green, contributing significantly to the overall market momentum.
Last Week’s Volatility Linked to Global Tariff Concerns
This bullish reversal comes after a volatile week at PSX, which saw the KSE-100 index drop 3,938 points, marking a 3.3% decline on a weekly basis, and closing at 114,853 on Friday.
The decline was largely attributed to heightened global uncertainty, particularly due to tariff-related statements from US President Donald Trump, which rattled investor sentiment worldwide.
Global Market Relief After Tariff Exemptions
Global equities found some relief as Wall Street futures rose in Asian trading, following news that the White House exempted smartphones and computers from new US tariffs on Chinese imports.
Although President Trump hinted at future levies, including upcoming announcements on semiconductors and a pending decision on mobile phones, markets responded positively in the short term.
In global markets:
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MSCI Asia-Pacific Index (excluding Japan) rose 1.6% after falling over 4% the previous week.
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Chinese blue-chip stocks gained 0.5%, especially Apple suppliers.
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Japan’s Nikkei 225 added 1.6%, recovering from recent volatility.
Meanwhile, Japan prepares for trade talks with the US, with expectations that currency policy may be a key discussion point, and Tokyo potentially being asked to support a stronger yen.
Outlook: Cautious Optimism Amid Global Uncertainty
Despite the strong rebound at the PSX and positive moves in global markets, investor sentiment remains cautious. The fluctuating trade policies and geopolitical tensions continue to weigh on long-term outlooks.
Analysts suggest that while short-term relief rallies are expected, market stability depends on clearer global trade direction, as well as domestic economic indicators.
Conclusion
The PSX’s 1,000-point intra-day surge marks a welcome change in tone after a volatile week, driven by global cues and selective sectoral optimism. However, market participants are advised to remain vigilant as global uncertainty persists.
