Karachi – August 4, 2025:
The Pakistan Stock Exchange (PSX) sustained its upward momentum on Monday, as the benchmark KSE-100 Index broke past the 142,000-point threshold for the first time, signalling renewed investor confidence in the country’s economic outlook.
As of 2:35pm, the index had climbed to 142,131.39 — a gain of 1,096.41 points, or 0.78%. The rally was underpinned by strong buying activity in key sectors including banking, oil and gas exploration, power, refineries, and oil marketing companies.
Heavyweight stocks such as Attock Refinery Limited (ARL), Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), Wafi Energy, HBL, Meezan Bank, and National Bank of Pakistan (NBP) were all trading firmly in the green.
Analysts credited the bullish sentiment to a recently signed trade agreement between the United States and Pakistan, which is expected to result in reduced tariffs on Pakistani exports — a development that has injected fresh optimism into the local bourse.
“The deal with the US has definitely been a major sentiment booster,” said a senior market analyst. “It’s not just about the economic benefits — it’s a signal to the global market that Pakistan is back in the game diplomatically and economically.”
Last week, the PSX closed on a high note, with the KSE-100 Index reaching a record closing of 141,035 points, marking a 1.3% weekly gain. During that week, the market also touched an intraday high of 141,161 points, highlighting a dramatic shift in sentiment that had been largely driven by the unexpected breakthrough in US-Pakistan trade relations.
On the global front, however, the tone was more cautious. Asian stock markets mirrored Wall Street’s declines on Monday as investors reacted nervously to fresh signs of weakness in the US labor market. July’s jobs report fell short of expectations, with downward revisions revealing that payrolls were actually 290,000 lower than previously believed.
The slowdown in the three-month average — now at just 35,000 jobs per month compared to 231,000 earlier this year — further dampened the mood. Meanwhile, US President Donald Trump’s abrupt dismissal of the head of the Bureau of Labor Statistics sparked concerns over the reliability of official economic data, adding another layer of uncertainty.
The president’s ability to soon appoint a new Federal Reserve governor has also raised eyebrows among investors, who fear further politicisation of US monetary policy.
Despite the broader concerns, some stability was seen in US futures. The S&P 500 inched up by 0.1%, while the Nasdaq gained 0.2%, buoyed in part by a decline in oil prices and hopes of a near-certain rate cut by the US Fed in September.
Asian markets were mixed. Japan’s Nikkei 225 slumped 2.1%, and South Korea’s benchmark fell by 0.2%. In contrast, MSCI’s Asia-Pacific Index (excluding Japan) edged up 0.3%, reflecting a slightly more resilient outlook in some regional markets.
Back home, market watchers believe the PSX may continue its positive trajectory in the short term, but caution that sustained gains will depend on political stability, progress on reforms, and implementation of the trade deal’s key provisions.
