The Pakistan Stock Exchange (PSX) kicked off Tuesday with strong momentum, with the benchmark KSE-100 Index surging past the 149,000-point milestone in early trade. By 10:21 am, the index had climbed 1,170 points to reach 149,367.31, extending gains from Monday’s close at 148,196.42.
Sector-Wide Buying Spree
Investor activity was concentrated in key sectors, including banks, cement, autos, and pharmaceuticals. Blue-chip stocks such as DG Khan Cement, Habib Bank (HBL), MCB Bank, Meezan Bank, and United Bank (UBL) all traded higher, reflecting broader market confidence.
By midday, the index hovered near 149,356—up almost 0.8%—indicating strong follow-through from the previous session.
Reform Buzz Fuels Optimism
Analysts attribute the rally to renewed optimism around government plans to address the circular debt crisis, a chronic issue that has strained Pakistan’s energy sector and weighed on liquidity across industries. Hopes that structural reforms will ease pressure on the economy have encouraged institutional and retail investors alike.
Global Markets Send Mixed Signals
While Pakistan’s market moved higher, global trading painted a more cautious picture. Asian shares slipped slightly on Tuesday, with MSCI’s Asia-Pacific index outside Japan dipping 0.2%. Japan’s Nikkei briefly touched record territory before sliding 0.5%, dragged down by a sharp 5% drop in SoftBank following its $2 billion investment in Intel.
In Europe, futures pointed to modest gains. The Euro Stoxx 50 was up 0.3%, Germany’s DAX futures rose 0.2%, and London’s FTSE added 0.3%. These movements followed remarks by Ukrainian President Volodymyr Zelenskiy, who suggested that security guarantees for Kyiv could be finalized within 10 days after talks with Western leaders.
Currency and Commodities
The foreign exchange market held steady, with the dollar trading at 147.78 yen and the euro at $1.1658. The dollar index edged up to 98.17, building on the previous session’s gains as traders awaited guidance from the U.S. Federal Reserve’s upcoming policy gathering at Jackson Hole.
Commodities were subdued: U.S. crude slipped 0.2% to $63.29 a barrel, while gold inched higher to $3,334.9 per ounce.
Takeaway
The PSX’s rally underscores how domestic reforms can overshadow global headwinds—at least in the short term. While international markets remain cautious ahead of central bank signals and geopolitical developments, local investors are betting on structural fixes to Pakistan’s energy woes to unlock growth in broader sectors.