The Pakistan Stock Exchange (PSX) saw a strong rebound on Monday as the KSE-100 Index surged over 1,000 points in early trading. Investors turned optimistic ahead of the State Bank of Pakistan’s Monetary Policy Committee (MPC) meeting scheduled later today.
After several days of profit-taking, fresh buying lifted the market. By 10:05 a.m., the KSE-100 Index was trading at 155,389.90 points, up 950 points or 0.62%. At one point, the index climbed to 155,463 points, marking a gain of 1,023 points during the opening session. This recovery pushed the benchmark past the 155,000-point level.
Strong buying interest was observed in major sectors, including commercial banks, fertiliser, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Heavyweights such as ARL, HUBCO, MARI, POL, PPL, PSO, WAFI, HBL, NBP, and UBL traded in positive territory, driving the rally.
Market participants are closely watching the MPC meeting. Analysts expect the central bank to maintain the policy rate at 11%, as inflationary pressures persist due to recent flooding and rising energy costs. In the last meeting held on June 30, 2025, the MPC kept rates unchanged, citing concerns over inflation.
Last week, the PSX remained relatively stable despite volatile trading. The KSE-100 Index touched a record high of 157,817 points during intraday trading before closing at 154,440 points, gaining only 163 points week-on-week (0.1%).
Internationally, Asian markets opened cautiously as investors awaited decisions from major central banks, including the US Federal Reserve, Bank of Canada, Bank of Japan, Bank of England, and China’s central bank. Markets are priced for a 25-basis-point cut by the US Fed, which would reduce its funds rate to 4.0–4.25%. Investors also await guidance from Fed Chair Jerome Powell on future monetary policy.
The PSX’s strong early session highlights growing investor confidence amid careful monitoring of global and domestic economic signals.
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