The Pakistan Stock Exchange (PSX) kicked off the week on a high note, with the benchmark KSE-100 Index closing above the 156,000 level for the first time in history on Monday.
The index surged to an intra-day peak of 156,199 points before settling at 156,087, marking a gain of 1,810 points (1.17%).
Why the Rally?
Despite heavy losses in the agriculture sector due to ongoing floods, investor confidence stayed strong. Much of the buying came from cement stocks, with expectations of rising demand for reconstruction and rehabilitation projects.
The energy sector also drew investor attention after reports suggested progress on resolving the long-standing circular debt issue.
On the policy side, analysts believe the State Bank of Pakistan (SBP) will likely maintain interest rates for now, though food inflation linked to flood damage remains a concern.
Government and Investor Sentiment
Prime Minister Shahbaz Sharif welcomed the milestone, calling it a reflection of investor confidence in government policies. He also pointed to recently signed multi-billion-dollar agreements with Chinese private firms, which are expected to boost investment, create jobs, and enhance exports.
Market Momentum
- Last week alone, the PSX rose 3.8% (5,659 points), closing at 154,277 points – one of its strongest weekly performances of the year.
- The Pakistani rupee also extended its winning streak, posting its 22nd consecutive gain to close at 281.62 per dollar.
- Trading activity was robust, with over 1.12 billion shares changing hands, worth Rs62.29 billion.
Top Movers
- Winners: Sitara Chemical (+Rs87.75), Service Industries (+Rs55.36)
- Losers: PIA Holding (-Rs506.00), Unilever Foods (-Rs90.67)
- Volume Leaders: K-Electric (93.75m shares), Bank of Punjab (71.44m), Dewan Cement (63.92m)
Global Market Snapshot
Globally, Asian stocks rose while the yen slipped following Japan’s political shake-up after PM Shigeru Ishiba’s resignation. US markets ended last week slightly lower as investors braced for a possible interest rate cut.