Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that another attempt to surpass the 140,000 psychological barrier on a closing basis proved unsuccessful. the trading session began strongly, with the index reaching an intraday high of 140,149, an increase of 942 points, or 0.68 percent. Still, this rally was short-lived as selling pressure emerged, pushing the index back below the critical level.

Investor sentiment was initially bolstered by Foreign Minister Ishaq Dar’s weekend remarks indicating that pakistan and the United States were nearing the finalization of a trade deal. Though, the U.S. side, following Dar’s meeting with Secretary of State marco Rubio, did not confirm a specific timeline. such an agreement, if realized, could potentially boost exports, attract investment, and enhance market confidence, though any delays might temper economic optimism.

Topline Securities reported that the market remained within a defined range throughout the trading day. The banking sector experienced pressure amid speculation regarding an impending policy rate reduction, while the cement sector saw gains following the economic Coordination Committee’s (ECC) approval of the Housing Finance Subsidy Scheme.

Key contributors to the index’s upward movement included Lucky Cement, Systems Ltd, PSO, Fatima Fertiliser, and Sazgar Engineering, which collectively added 379 points. Conversely,UBL,Meezan Bank,and Bank Alfalah were the primary decliners,collectively subtracting 261 points from the index.

Ahsan Mehanti of Arif Habib Corporation attributed the positive closing to investor anticipation ahead of the State Bank’s monetary policy announcement scheduled for July 30. The rise in pakistan’s sovereign bond prices, following S&P Global’s credit rating upgrade to ‘B-‘ with a stable outlook, coupled with strong earnings expectations and increasing global crude oil prices, also contributed to the market’s resilience.

The Pakistan Stock Exchange has historically been sensitive to global economic trends and domestic policy announcements. Fluctuations around key psychological levels like 140,000 points frequently enough reflect investor sentiment regarding economic stability, trade relations, and interest rate expectations. The recent upgrade by S&P Global signifies improved investor confidence in Pakistan’s economic outlook, a trend that market participants closely monitor.

Frequently Asked Questions

What was the closing KSE-100 index on Monday?

The KSE-100 index closed at 139,380.06 on Monday.

What factors influenced the market’s movement?

Factors included speculation about a U.S.-Pakistan trade deal, potential interest rate cuts, the Housing Finance Subsidy Scheme, and anticipation of the State Bank’s monetary policy announcement.

Which sectors performed well and which lagged?

The cement sector gained, while the banking sector faced pressure.

Published in Dawn, July 29th, 2025

Disclaimer: This article provides general details and does not constitute financial or investment advice. readers should consult with qualified professionals before making any investment decisions.