ISLAMABAD (PEN) : Following a sharp decline the previous day, the Pakistan Stock Exchange (PSX) saw renewed bullish momentum on Tuesday, with the benchmark KSE-100 Index rising by more than 700 points during early trading hours.
KSE-100 Index Opens Higher
By 10:40 a.m., the KSE-100 stood at 119,578.51 points, marking an increase of 700.71 points, or 0.59%. Gains were particularly noted in sectors such as cement, commercial banking, oil and gas exploration, oil marketing companies (OMCs), and power generation. Major index-heavy stocks including HUBCO, SNGPL, SSGC, OGDC, PPL, MCB, MEBL, and UBL traded in positive territory.
Government’s Economic Outlook Bolsters Market Sentiment
Prime Minister Shehbaz Sharif’s recent remarks played a key role in boosting investor confidence. On Monday, he stated that negotiations with the International Monetary Fund (IMF) over the upcoming federal budget had been successful, setting the stage for a new phase of economic growth. The premier added that the government had stabilized the economy and would now focus on sustained development.
Previous Day’s Volatility
On Monday, the PSX experienced volatility as early gains dissipated due to heavy selling pressure later in the session. The KSE-100 Index closed down by 813.29 points, or 0.68%, finishing at 118,878 points.
Global Market Context
Meanwhile, Asian markets edged cautiously higher on Tuesday. The U.S. dollar dropped to a six-week low amid concerns over unpredictable U.S. trade policies and ahead of anticipated talks between U.S. President Donald Trump and Chinese leader Xi Jinping. White House Press Secretary Karoline Leavitt confirmed the scheduled conversation, which could influence market dynamics tied to ongoing tariff disputes.
Recent data revealed that U.S. manufacturing contracted for the third consecutive month in May, with delays in supply deliveries attributed to tariff impacts. This contributed to subdued U.S. futures trading during the Asian session, with Nasdaq and S\&P 500 futures each down 0.2%. European futures, however, showed modest gains, with the EUROSTOXX 50 up 0.28% and FTSE futures rising 0.15%. The MSCI Asia-Pacific index, excluding Japan, recovered from early losses to close 0.6% higher, while Japan’s Nikkei increased by 0.66%.
