Pakistan Stock Exchange (PSX) opened the month of August with a major surge as the KSE-100 Index crossed the 141,000-point mark for the first time in history. The market reacted strongly to the United States’ announcement of a 19% import tariff concession for Pakistani goods.
The investors were very active in the purchase of shares in major export oriented industries such as textile, leather and plastics. The bullish momentum continued within and through the trading session which led to the highest record market performance.
The resistance had been in the market at the 140,000 points over the last couple of weeks. The investor sentiment was also once reserved as a result of the State Bank leaving the interest rate unchanged. But when it became clear that there was an understanding between Pakistan and the US on the trade agreement, the investors started to buy up again and dragged the index into new resistance zones.
Shares of companies exporting to the US experienced the highest activity, particularly in sectors benefiting from the new tariff relief. According to stock analysts, this includes textile exports to the US, leather product exports, and plastic goods shipments.
The PSX rally aligns with ongoing interest from institutional investors in sectors expected to benefit from improved trade terms between Pakistan and the United States.
