On Monday, trading at the Pakistan Stock Exchange (PSX) opened with strong momentum, pushing the benchmark KSE-100 Index up by nearly 1,700 points in the early hours.
Reports indicate that by 11 a.m., the KSE-100 Index had risen 1,687.91 points, or 0.91 percent, to reach 186,786.74 points. Significant buying was observed in sectors including automobile assemblers, cement, commercial banks, fertilizer, oil and gas exploration, oil marketing companies (OMCs), and power generation & refinery. Companies such as ARL, Hubco, Mari, OGDC, POL, PPL, PSO, SNGPL, SSGC, MCB, Meezan Bank, and National Bank were also seen in positive territory.
Analysts say the primary reason for this surge is expectations of a policy rate cut in the upcoming Monetary Policy Committee meeting, scheduled for January 26, 2026. Last week, the stock exchange ended on a strong footing, with the benchmark KSE-100 Index recovering losses caused by rising geopolitical tensions in the region. On a weekly basis, the KSE-100 Index increased 689.16 points, or 0.4 percent, closing at 185,098.83 points.
Meanwhile, globally, Asian stock markets showed declines on Monday. The drop followed a threat by President Donald Trump to impose additional tariffs on eight European countries. Sources reported that this situation led to a decline in the value of the US dollar, while investors moved toward safe-haven currencies like the Japanese yen and Swiss franc.
US equity and bond markets saw lower volumes due to a holiday, with S&P 500 futures down 0.8 percent and Nasdaq futures down 1.1 percent. In Europe, Euro Stoxx 50 and DAX futures fell 1.3 percent, while FTSE futures declined 0.6 percent. In Japan, the Nikkei Index dropped 1.4 percent, and the MSCI Asia-Pacific index (excluding Japan) fell slightly by 0.3 percent.
