The Pakistan Stock Exchange (PSX) closed higher on Monday, with the benchmark KSE-100 Index gaining nearly 400 points despite continued uncertainty surrounding diplomatic efforts to ease tensions in the Middle East.
According to PSX data, the KSE-100 Index opened on a positive note and climbed to an intraday high of 181,158.86 points during the early trading session. Buying momentum remained visible throughout the day.
The index closed at 180,502.44 points, recording a gain of 397.83 points, or 0.22%, compared with the previous session.
Investor interest remained concentrated across several major sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies, power generation, and refineries.
The positive session followed a difficult week for the market, during which investors remained concerned about the future of the US-Iran ceasefire and potential disruptions to oil supplies through the Strait of Hormuz and the Red Sea.
The KSE-100 had declined by 1,325.41 points, or 0.7%, on a week-on-week basis to close at 180,104.61 points.
International markets also provided a positive backdrop on Monday. Global equities moved higher while the US dollar weakened toward a two-month low following softer-than-expected US economic data.
US retail sales unexpectedly declined in July, while consumer sentiment also weakened more than anticipated. The data reduced expectations of an imminent Federal Reserve rate hike.
According to CME Group’s FedWatch tool, markets were pricing the probability of a rate hike next month at around 30%, down from approximately 50% a week earlier.
European and Asian equities also posted gains. The STOXX 600 rose 0.21%, while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5%. Japan’s Nikkei also increased by 0.3%.
Oil prices remained closely watched amid ongoing geopolitical tensions.
Brent crude futures rose 27 cents, or 0.31%, to $88.79 per barrel by 0806 GMT after reaching an intraday high of $89.40.
US West Texas Intermediate crude futures declined 24 cents, or 0.29%, to $82.16 per barrel.
The combination of stronger domestic buying, improved global market sentiment, and reduced expectations of a near-term US rate hike helped support the PSX during Monday’s trading session.
