KSE-100 maintains upward momentum despite political uncertainty

A mixed trend was witnessed at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 oscillated in the red and green zones.

The KSE-100 started the session negatively, hitting an intra-day low of 97,137.63 at 9:40am.

However, buying returned to the bourse pushing the index above the 99,000 level.

At 10:20am, the benchmark index was hovering at 99,011.65, an increase of 1,213.42 points or 1.24%.

Buying was observed in key sectors including automobile assemblers, commercial banks, fertilizer, pharmaceuticals, refinery, power generation and OMCs. Index-heavy HBL, NBP, MEBL, UBL, MCB, HUBCO, PSO, SSGC and FFC traded in the green territory.

The upward momentum stems from positive macroeconomic indicators, including an improved current account surplus, remittance

Meanwhile, investors are gauging political volatility on the local front.

Thousands of charged loyalists of jailed founding chairman of Pakistan Tehreek-e-Insaf (PTI) and ex-premier Imran Khan, from across the country, launched the “decisive” long march on Sunday towards the federal capital, removing all the barricades set up by the government to stop their way.

In a bid to foil the long march, the police also arrested hundreds of PTI supporters from twin cities of Rawalpindi and Islamabad as residents took to the streets in big numbers to voice strong support to Khan’s final call, pressing the government to meet their three demands – release of PTI political members from jails, abolishment of 26th controversial Constitutional Amendment and return of PTI’s “stolen mandate.”

During the previous week, the bullish trend continued at the bourse hitting historic highest-ever levels on the back of aggressive buying mainly by local investors coupled with institutional support.

The benchmark KSE-100 index surged by 3,034.59 points weekly and closed the week at its highest-ever level of 97,798.23 points. During the week the index crossed the 99,000 historic level, however, it closed at a slightly lower level due to profit-taking in some stocks.

Globally, Asian stocks rallied with US equity futures on Monday, while the dollar retreated against rivals as bond yields slid following the selection of fund manager Scott Bessent as the next U.S. Treasury secretary, with investors expecting he will be a voice for markets in Washington.

MSCI’s broadest index of Asia-Pacific shares climbed 1.6% as of 0143 GMT, and US S&P 500 futures pointed 0.5% higher to just shy of a record high, after a 0.3% gain for the cash index at the end of last week.