PSX starts the week on a positive note after Friday’s calculated close

KARACHI: The Pakistan Stock Exchange (PSX) kicked off the new week with renewed momentum, rising nearly 600 points in early Monday trade after a steady, introspective finish last week. The benchmark KSE-100 Index opened at Friday’s close of 167,085.58 points and climbed to 167,683.70 points by half past 10, signaling fresh investor appetite following days of consolidation.

Last week ended with the KSE-100 posting a modest 0.2 percent gain, closing at 167,085.58 points. Early in the week, improving macro indicators had helped set a positive tone. November inflation eased to 6.1 per cent, pulling the FY26 five-month average to 5 per cent, sharply lower than last year’s 7.9 per cent, media reports noted. Investors briefly exhaled, anticipating a period of monetary stability.

But the optimism was quickly constrained. Pakistan’s trade deficit widened 33 per cent year-on-year to $2.85 billion, driven by slumping exports and rising imports. Fiscal pressures continued to mount as the Federal Board of Revenue (FBR) posted a Rs 349 billion shortfall over five months. Although the government assured that an IMF-backed reform action plan would be finalised by the end of December, sentiment remained mixed.

The hike in the PSX today can also be partially attributed to the rising expectations of the IMF loan, since the board meeting is scheduled for today. Another major confidence boost came last week when Saudi Arabia extended its $3 billion deposit facility until December 2026.

For this week, experts are of the opinion that the PSX will likely make an attempt at a new all-time high, driven particularly by strength in the energy sector as investors brace for a potential circular debt resolution, a development that could ignite aggressive buying in E&P and power stocks.