The Pakistan Stock Exchange (PSX) experienced a rally on Monday, rising by 1%, or 1,152.58 points, to reach 116,621.92.
This marks a strong upward movement from the previous close of 115,469.34 points.
According to Mustafa Mustansir, Director of Research and Business Development at Taurus Securities Limited, the bullish trend was driven by a combination of positive news.
One key factor was Pakistan’s successful presentation of its stance on the Pahalgam attack to the United Nations Security Council, which bolstered confidence in the country’s diplomatic efforts.
The market had remained volatile last week following New Delhi’s response to the deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK), which included suspending a bilateral water treaty, cutting diplomatic ties, and imposing travel restrictions. Pakistan retaliated by closing its airspace to Indian flights and expelling Indian diplomats.
Additionally, Mustansir said that reports about US-China trade negotiations have alleviated concerns over a prolonged trade war, which has positively impacted global equity markets, including Pakistan’s.
China has repeatedly denied that tariff-related negotiations were ongoing, though on Friday it exempted some US goods from its retaliatory tariffs. Beijing has also demanded that Washington stop making threats and using “extreme pressure” if it wants to make a deal, as well as asking America for a counterpart for potential talks.
“This improvement in international sentiment contributed to a positive atmosphere in local markets,” the capital market expert said.
The international community’s reception of Pakistan’s economic revival at the recent World Bank and IMF Spring Meetings also added to investor optimism.
Furthermore, he added, earnings announcements from key companies have enhanced overall market sentiment, further driving the positive momentum at the bourse.
