A positive sentiment is observed at the Pakistan Stock Exchange (PSX), where the benchmark KSE-100 index hovers around the 65,000 level in early Monday trading.
The index shows a gain of 308.98 points or 0.48%, reaching an intra-day high of 65,173.87, driven by strong performances from index-heavy shares like OGDC and PPL.
The optimism at PSX is attributed partly to the completion of the first review of the $3 billion Stand-by Arrangement by the International Monetary Fund (IMF) Executive Board.
Additionally, expectations of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting of the State Bank of Pakistan contribute to the positive atmosphere, although the meeting schedule is yet to be announced.
Last week, the PSX experienced a mixed trend with low trading activity, as investors opted for caution due to political uncertainties in the country. Despite this, the benchmark KSE-100 index gained 122.74 points on a week-on-week basis, closing at 64,637.64 points.
Globally, Asian markets rose on Monday, influenced by US inflation data that rekindled hopes for an early interest rate cut. However, geopolitical concerns surfaced after fresh US-UK strikes on Houthi targets in Yemen, leading to a surge in oil prices.
The situation, coupled with ongoing conflicts such as Israel’s aggression in Gaza, raises worries of a potential regional conflict that could impact trade routes and push crude oil prices beyond $100.
The PSX’s positive performance is intertwined with both domestic economic developments and global geopolitical events, creating a dynamic landscape for investors.
