Investor sentiments remain highly positive at the Pakistan Stock Exchange (PSX) today. The benchmark KSE-100 Index gained over 1,900 points during Monday’s trading session. Specifically, the index hovered at 187,312.91 around 1:08 PM. This marks a massive jump of 1,940.71 points, or 1.05%.
PSX Continues Bullish Momentum
During the previous week, the PSX extended its bullish momentum. The KSE-100 Index climbed 5,800.93 points, representing a 3.2% gain. Ultimately, it closed the week at 185,372.20 points.
Furthermore, easing geopolitical tensions in the Middle East heavily supported this sentiment. Lower international oil prices and encouraging domestic macroeconomic indicators also played a huge role. Consequently, investors observed heavy buying in key sectors today. These active sectors include automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and refineries.
Moreover, index-heavy stocks traded securely in the green. Leading the charge were ARL, HUBCO, MARI, OGDC, POL, PSO, MCB, MEBL, and NBP.
Global Relief & Oil Output
Internationally, Asian share markets largely remained firm on Monday. Additionally, Wall Street futures started the week with strong gains. Investors currently hope for an upbeat earnings season. Meanwhile, easing oil prices promised much-needed relief from inflationary pressures.
OPEC+ recently agreed on a further increase in output targets. They will add 188,000 barrels per day starting in August. This move directly follows similar production increases for June and July. As a result, Brent crude slipped 0.6% to hit near four-month lows at $71.70 a barrel. Similarly, U.S. crude lost 0.5% to settle at $68.38.
Furthermore, ships are safely passing through the Strait of Hormuz. Authorities reported 160 vessels navigating the strait from Monday to Saturday last week. However, there are no new developments in the fractious U.S.-Iran peace talks.
Tech Profits & the Federal Reserve
The cooling in energy costs heavily influenced market expectations. Combined with a softer U.S. payrolls report, markets scaled back the risk of a near-term Federal Reserve rate hike. In fact, futures imply a 78% chance of a steady outcome at the upcoming July 29 meeting. The Fed will release minutes from its last meeting on Wednesday. This should offer clarity on the recent hawkish turn by some board members, though that shift preceded the recent slide in oil prices.
Consequently, the diminished risk of a rate hike allows investors to focus on the looming earnings season. The ongoing AI boom is set to deliver bumper tech profits. Delta Air Lines and PepsiCo will offer a taste of these earnings this week.
However, Samsung Electronics is set to make a massive splash on Tuesday. Analysts expect the world’s largest memory chipmaker by sales to report an 18-fold increase in profits. Estimates suggest an operating profit of 86 trillion won ($56.35 billion) for the April to June quarter.
South Korea’s red-hot market cooled slightly last week, but it remains up 92% for the year so far. Surging AI demand and tight supplies continue to boost chip prices. Finally, the South Korean index added another 2.25% on Monday. Meanwhile, Japan’s Nikkei eased by 0.1%, and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%.
