Boosted by a resurgence in the energy sector, the Pakistan Stock Exchange (PSX) witnessed a turnaround, with the benchmark KSE-100 Index gaining nearly 400 points in Monday’s trading session.
Around 11:40 am, the benchmark index reached 60,238.77, marking an increase of 365.81 points or 0.61%. This recovery followed a recent dip in the KSE-100, which had dropped close to the 59,200 level due to persistent political uncertainty impacting investor sentiment.
After reaching an intra-day low of 59,191.85, the KSE-100 reversed its course, with index-heavy stocks such as OGDC, PPL, and SNGPL showing positive trends.
Reports suggest that progress has been made in government formation discussions between the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP). The PPP has expressed readiness to join the federal cabinet, with agreements reached during a coordination committee meeting in Islamabad.
On the corporate front, the Oil & Gas Development Company Limited (OGDCL) announced a significant discovery of hydrocarbon reserves at the Khewari block in the Khairpur district, Sindh.
The PSX had faced substantial pressure in the previous week, experiencing significant losses due to panic selling amid investor concerns about the deteriorating political situation following the general elections. The KSE-100 index had plunged by 3,070.79 points on a week-on-week basis, closing at 59,872.96 points.
Globally, Asian shares had a hesitant start on Monday, influenced by fading hopes for early global rate cuts, while Chinese markets, returning from a holiday, showed modest gains. Thin trading, due to a US market holiday, and anticipation of tech stock performance, including AI giant Nvidia’s results on Wednesday, added to the cautious market mood.
