Buying momentum continued to dominate the Pakistan Stock Exchange (PSX) on Monday, pushing the benchmark KSE-100 Index beyond the psychological barrier of 136,000 points for the first time in its history. The rally reflects growing investor confidence in the country’s economic direction, coupled with a series of encouraging macroeconomic developments.
During trading hours, the index soared to an intraday high of 136,841.49 points. It eventually closed at 136,502.53, securing a substantial gain of 2,202.77 points or 1.64% by the session’s end. This surge builds on the momentum seen last week, when the index had already set new records by finishing at 134,299.77 points, gaining 2,351 points or 1.8% on a weekly basis.
Market activity was vibrant across several heavyweight sectors, including automobile assemblers, cement, commercial banking, oil and gas exploration, oil marketing companies, and refineries. Key players such as MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC, MEBL, NBP, and UBL all traded firmly in the green, signaling broad-based participation in the ongoing rally.
Prime Minister Shehbaz Sharif acknowledged the stock market’s stellar performance in a statement released by the Prime Minister’s Office. He highlighted the milestone as evidence of the business community’s trust in the current trajectory of Pakistan’s economy. Sharif also pointed to rising positive indicators as proof that government policies are steering the country in the right direction.
Meanwhile, analysts attribute this bullish run to several interconnected factors. The start of the corporate earnings season has kept market participants attentive to company performance, which could further fuel optimism if quarterly results surpass expectations. Speaking to Business Recorder, Sana Tawfik, Head of Research at Arif Habib Limited, emphasized that investors should keep a close watch on earnings announcements in the coming days, as these could sustain or even accelerate the rally.
Additionally, the market’s momentum has been underpinned by robust macroeconomic fundamentals, including record inflows from remittances in the previous fiscal year. Foreign institutional investors have also played a part, as steady inflows continue to underpin liquidity in the local bourse.
Beyond Pakistan’s borders, global financial markets presented a mixed picture. Asian stocks struggled to gain traction amid renewed concerns over escalating US trade tensions. President Donald Trump’s latest announcement of a 30% tariff on most imports from the EU and Mexico set for August has rattled sentiment, even as negotiations continue. European policymakers responded by extending a suspension of counter-tariffs and reiterated their push for a diplomatic resolution.
While these developments caused mild caution across regional indices — with Japan’s Nikkei dipping 0.3% and the MSCI’s broad Asia-Pacific index flat — Chinese blue chips managed a modest 0.3% rise on stronger-than-expected export data. Meanwhile, the US dollar remained largely steady against the euro, reflecting investors’ growing resilience to Washington’s unpredictable policy shifts.
Against this international backdrop, Pakistan’s stock market remains a standout, buoyed by local drivers that continue to inspire investor optimism. As the earnings season advances and economic indicators hold firm, market watchers will look to see if the KSE-100 can sustain its upward trajectory or even breach new thresholds in the weeks ahead.
The recent highs at the PSX underline more than just a technical milestone; they represent a cautious but growing faith in the country’s evolving economic landscape — a sentiment that could be key to drawing in further domestic and global capital.