KSE-100 surges past historic threshold amid optimism over US trade deal
KARACHI – The Pakistan Stock Exchange (PSX) kicked off the week with a powerful rally, with the benchmark KSE-100 Index crossing the 142,000 mark for the first time in its history on Monday, reflecting sustained investor confidence and fresh momentum from recent geopolitical developments.
By the end of the session, the index had gained 1,017.66 points to close at 142,052.64, marking a 0.72% increase on the day. The bullish sentiment saw the index touch an intraday peak of 142,323.34.
Trade Breakthrough Fuels Market Euphoria
Market analysts say the surge is largely driven by investor enthusiasm following a newly inked trade agreement between the United States and Pakistan. The deal, which is expected to ease tariff barriers for Pakistani exports, is being seen as a significant win for the country’s economy and a potential catalyst for increased foreign exchange earnings.
“This agreement shifts the narrative,” said one analyst. “It could improve Pakistan’s trade balance and give a much-needed boost to its manufacturing and export sectors.”
Last week, the KSE-100 had already set the stage for this rally, closing at a then-record 141,035 points, capping off a strong 1.3% weekly performance.
Global Markets Paint a Mixed Picture
While Pakistan’s stock market climbed, regional trends in Asia were more cautious. Investors across Asia digested a disappointing US payroll report that showed a steep revision in job numbers. The data brought renewed fears of an economic slowdown in the US, raising expectations of a Federal Reserve interest rate cut as early as September.
Wall Street’s Friday retreat echoed across Asian markets on Monday. Japan’s Nikkei 225 slumped by 2.1%, and South Korea’s KOSPI edged down 0.2%. However, MSCI’s index for Asia-Pacific shares (excluding Japan) bucked the trend slightly with a modest gain of 0.3%.
The political backdrop added to investor anxiety. US President Donald Trump’s firing of the head of the Labor Statistics Bureau, coupled with his impending opportunity to appoint a new Fed governor, raised concerns about increasing political interference in monetary policy.
Rupee Continues to Strengthen
Back home, the Pakistani rupee extended its recent gains against the US dollar. The local currency appreciated by Rs0.06 to close at 282.66 in the inter-bank market, reinforcing broader signs of financial stabilization.
Trading Highlights: Energy and Banking Dominate Volumes
Overall trading activity saw a noticeable uptick in volume, with 666.37 million shares changing hands—up from 609.71 million in the previous session. However, the total traded value dropped to Rs42.92 billion from Rs50.55 billion.
Cnergyico PK led the charge in terms of volume, trading 53.70 million shares. It was followed closely by Pak International Bulk Terminal (50.58 million) and Bank of Punjab (30.63 million).
Out of the 482 companies whose shares were traded, 247 saw price gains, 206 declined, and 29 remained unchanged—signaling a fairly balanced market sentiment despite the record-breaking index level.
With optimism surrounding trade developments and a steady rupee, Pakistan’s equity market seems to be charting a new course. Whether this rally proves sustainable will depend largely on how external conditions evolve and whether the government can leverage this momentum for deeper economic reform.
