Stocks surge, KSE-100 crosses 133,000 level
At 9:55am, the benchmark index was hovering at 133,083.47, an increase of 1,134.41 points or 0.86%.
Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including ARL, HUBCO, PSO, SSGC, EFERT, MCB, MEBL and UBL traded in the green.
The PSX kicked off fiscal year 2026 at a record high, with the KSE-100 index surpassing the 130,000 points mark for the first time. The index closed the previous week at 131,949 points, marking a 6.1% week-on-week increase.
The benchmark KSE-100 index has showcased an 'outstanding performance in FY25, leading all major asset classes with an impressive return of 60.15%', said Arif Habib Limited (AHL).
Internationally, stock markets slipped in Asia on Monday amid confusion as US officials flagged a delay on tariffs but failed to provide much detail on the change, while oil prices slid as OPEC+ opened the supply spigots more than expected.
The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1.
Trump in April announced a 10% base tariff rate on most countries and higher 'reciprocal' rates ranging up to 50%, with an original deadline of this Wednesday.
However, Trump also said levies could range in value from 'maybe 60% or 70%', and threatened an extra 10% on countries aligning themselves with the 'Anti-American policies' of the BRICS group of Brazil, Russia, India and China.
With very few actual trade deals done, analysts had always suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some.
Investors have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures and Nasdaq futures both eased 0.3%.
EUROSTOXX 50 futures eased 0.1%, while FTSE futures fell 0.2% and DAX futures held steady.
Japan's Nikkei lost 0.5%, while South Korean stocks went flat. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%, as Chinese blue chips dropped 0.5%.
This is an intra-day update
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
US customs duties top $100b for first time
A woman who is seeking asylum has her fingerprints taken by a US Customs and Border patrol officer at a pedestrian port of entry from Mexico to the United States, in McAllen, Texas, US, May 10, 2017. PHOTO: REUTERS Listen to article US customs duty collections surged again in June as President Donald Trump's tariffs gained steam, topping $100 billion for the first time during a fiscal year and helping to produce a surprise $27 billion budget surplus for the month, the Treasury Department reported on Friday. The budget data showed that tariffs are starting to build into a significant revenue contributor for the federal government, with customs duties in June hitting new records, quadrupling to $27.2 billion on a gross basis and $26.6 billion on a net basis after refunds. The budget results are likely to reinforce Trump's view of tariffs as a lucrative revenue source and as a hammer to enforce non-trade foreign policy. He said on Tuesday that "the big money" would start to flow in after he imposes higher reciprocal tariffs on US trading partners on August 1. US Treasury Secretary Scott Bessent said on X that the results show the US is "reaping the rewards" from Trump's tariff agenda. "As President Trump works hard to take back our nation's economic sovereignty, today's (Friday's) Monthly Treasury Statement is demonstrating record customs duties – and with no inflation!" Bessent said. For the first nine months of fiscal year 2025, the customs' take reached records of $113.3 billion on a gross basis and $108 billion on a net basis, nearly double the prior year collections. The government's fiscal year ends on September 30. Based on those results, tariffs have now grown into the fourth-largest revenue source for the federal government, behind individual withheld receipts at $2.683 trillion for the fiscal year, non-withheld individual receipts at $965 billion and corporate taxes at $392 billion. In the space of roughly four months, tariffs as a share of federal revenue have more than doubled to around 5% from about 2% historically. The June budget surplus represented a turnaround from the $71 billion deficit in June 2024. The new tariff-related revenue helped boost total budget receipts last month by 13%, or $60 billion, to $526 billion, a record for that month, the Treasury said. Outlays in June fell 7%, or $38 billion, to $499 billion. But adjusting for calendar shifts of some revenue and benefit payments, it said there would have been a budget deficit of $70 billion in June along with a year-ago adjusted deficit of $143 billion. The overall year-to-date deficit, however, increased 5%, or $64 billion, to $1.337 trillion, as outlays rose for healthcare programmes, Social Security retirement benefits, defence needs, debt interest and the Department of Homeland Security, the Treasury said. Receipts for the first nine months of the fiscal year rose 7%, or $254 billion, to a record $4.008 trillion, driven in part by withheld taxes from higher employment and wages, while outlays grew 6%, or $318 billion, to a record $5.346 trillion. The Treasury's interest costs on the national debt continued to grow, exceeding all other individual outlays at $921 billion for the first nine months of the fiscal year, up 6%, or $53 billion, from the year-ago period. But the Treasury's weighted average interest rate largely had stabilised at 3.3% at the end of June, up two basis points from a year ago, a Treasury official said. Bessent earlier this week suggested a steeper ramp-up in tariff collections, telling a cabinet meeting that calendar year 2025 collections could grow to $300 billion by the end of December. At the June run rate, gross customs collections would hit $276.5 billion in six months' time, which means reaching Bessent's target would require some increases. Ernie Tedeschi, Economics Director of the Budget Lab at Yale University, said it may take more time for the tariff revenue to fully ramp up because businesses and consumers have sought to front-run the duties by buying ahead. Once that effect fades and Trump implements higher reciprocal tariff rates after an August 1 deadline, the Treasury may collect an extra $10 billion in tariffs per month, bringing the total to $37 billion, he said.
Express Tribune
2 hours ago
- Express Tribune
PSX marks 2nd week of record highs
Listen to article The KSE-100 index of the Pakistan Stock Exchange (PSX) surged 2,351 points, or +2% week-on-week (WoW), to close at 134,300, marking a second week of gains driven by a strong earnings outlook, record remittances and positive macro news. Major boosts came from a US-Pakistan trade deal, $2 billion investment from Azerbaijan and rising Panda bond expectations. The State Bank's foreign currency reserves hit a 39-month high at $14.5 billion. Commercial banks led gains, adding 1,329 points, while cement, auto and textile sectors followed. UBL, Meezan Bank and MCB Bank were the top gainers while Bank AL Habib and Engro Fertilisers were the major drags. Average daily turnover fell 2% to 947.8 million shares and foreign investors sold $5.76 million worth of equities, but it was offset by local buying. Among FY25 highlights were remittances hitting $38.3 billion (+27%), auto sales higher by 43% and early retiring of Rs1.5 trillion worth of debt. Analysts see continued momentum with room for profit-taking. The index trades at 6.8x forward price-to-earnings ratio, offering a 7.4% dividend yield. Top picks include OGDC, Pakistan Petroleum, Meezan Bank, MCB Bank, PSO, Hubco and Systems Limited. On a day-on-day basis, the PSX extended its rally on Monday as the bullish momentum persisted, with the index surging 1,421 points (+1.08%) to 133,370, backed by encouraging macroeconomic signals. On the second trading day, the market shot up to a new peak above 134,000 points in intra-day dealings but it could not sustain the momentum and closed almost flat as investors offloaded their holdings to book profit. On Wednesday, the bourse witnessed volatile trading as the benchmark KSE-100 index recorded a decline of 826 points. The market entered a phase of consolidation following recent strong rallies, fluctuating between intra-day high of 133,566 and intra-day low of 132,326. The following day, the PSX had a positive session, gaining 1,205 points in the backdrop of historic high remittances at $38 billion for FY25 and $1 billion in Islamic financing from a Dubai Islamic Bank-led consortium, marking the return to Middle Eastern markets after two years. Consolidation continued at the market on Friday, when the index floated in both directions and ultimately closed at 134,300, reflecting a gain of 517 points. Arif Habib Limited (AHL), in its weekly commentary, noted that the KSE-100 index continued its upward trajectory, rising steadily from 131,949 to 134,300, marking a weekly gain of 2,351 points, or 2%. Among key developments, media reports suggested that Pakistan and the US had reached a trade and tariff deal framework ahead of the July 9 deadline, aimed at preserving market access and attracting US investment. Separately, Pakistan and Azerbaijan signed a $2 billion investment agreement during the 17th Economic Cooperation Organisation (ECO) Summit, with the final deal expected during Azerbaijan president's upcoming visit, AHL said. In the energy sector, OGDCL reported a production boost at the Rajian-05 well following ESP installation. Meanwhile, workers' remittances hit a record high of over $38 billion, up 27%. In the auto sector, FY25 sales rose 43% to 148k units, with June sales reaching a 36-month high of 21.8k units, caused by a proposed sales tax hike. The State Bank's foreign exchange reserves increased $1.77 billion to $14.5 billion – a 39-month high. The sectors that contributed positively were commercial banks (1,329 points), cement (304 points), auto assemblers (150 points), textiles (147 points) and pharmaceuticals (124 points). Meanwhile, sector-wise negative contributions came from E&P (82 points), miscellaneous (78 points), fertiliser (56 points), technology (47 points) and OMCs (39 points). Scrip-wise, positive contributions came from UBL (417 points), Meezan Bank (297 points), MCB Bank (171 points), Habib Metropolitan Bank (150 points) and Bank Alfalah (148 points). Scrip-wise, negative contributors were Bank AL Habib (103 points), Engro Fertilisers (86 points), Pakistan Services (78 points), Mari Petroleum (60 points) and Pakistan Petroleum (54 points). Foreign selling was witnessed during the week, which came in at $5.76 million compared to net selling of $15.33 million last week. Major selling was noted in commercial banks ($3.8 million), followed by fast moving consumer goods (FMCG) companies ($1.2 million). On the local front, buying was reported by mutual funds ($30.9 million) and individuals ($14.1 million), AHL added. Syed Danyal Hussain of JS Global observed that the KSE-100 index extended its bullish run during the outgoing week, gaining 2,351 points to close at 134,300. The rally was driven by several positive developments, including a surge in remittances, which reached an all-time high at $38.3 billion in FY25. Investor sentiment was further supported by reports of a potential understanding between Pakistan and the US on reciprocal tariffs, alongside news that a Dubai-based bank arranged a $1 billion financing for Pakistan.
Express Tribune
2 hours ago
- Express Tribune
Wall Street slips on Trump tariff threats
A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, US, July 19, 2021. PHOTO: REUTERS Listen to article Wall Street ended lower on Friday, with Meta Platforms weighing on the S&P 500 after President Donald Trump intensified his tariff offensive against Canada, amplifying the uncertainty swirling around US trade policy. Trump late on Thursday ramped up his tariff assault on Canada, saying the US would impose a 35% tariff on imports next month and planned to impose blanket tariffs of 15% or 20% on most other trading partners. The S&P 500 eased from a record high the day before, with caution prevailing after Trump on Thursday imposed 50% tariffs on Brazil and as the European Union braced for a possible letter from Trump with details on fresh tariffs. "The increased rhetoric around tariffs, what we've seen this week regarding Brazil and Canada, is certainly elevating the anxiety level," said Michael James, an equity sales trader at Rosenblatt Securities. "People had become a little more accustomed to the lack of negative tariff headlines, and we've kind of been reminded that the tariff picture is still there." Shares of Nvidia rose 0.5% to a record high, lifting its stock market value to $4.02 trillion. Drone makers AeroVironment and Kratos Defense & Security Solutions jumped about 11% after US Defense Secretary Pete Hegseth ordered a surge in drone production and deployment. The S&P 500 declined 0.33% to end the session at 6,259.75 points. The Nasdaq declined 0.22% to 20,585.53 points, while the Dow Jones Industrial Average fell 0.63% to 44,371.51 points. Volume on US exchanges was relatively light, with 15.4 billion shares traded, compared with an average of 18.3 billion shares over the previous 20 sessions. For the week, the S&P 500 dipped 0.3%, the Dow lost about 1% and the Nasdaq slipped 0.1%. The S&P 500 is up about 6% so far in 2025. Analysts on average expect S&P 500 companies to increase their second-quarter earnings by 5.7%, year over year, with big gains from tech companies and declining profits in energy, consumer staples and consumer discretionary, according to LSEG I/B/E/S. "We believe expectations are a bit low for S&P 500 earnings. Much of the second quarter was marked with tariff and trade issues and that may have caused some dislocations in earnings," said Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management. Levi Strauss & Co jumped 11% after the apparel seller raised its annual revenue and profit forecasts and beat quarterly estimates. Meta Platforms shares closed 1.3% lower after Reuters reported that the company is very unlikely to offer more changes to its pay-or-consent model, increasing the risk of fresh EU antitrust charges and hefty daily fines. Across the US stock market, declining stocks outnumbered rising ones by a 2.8-to-one ratio. The S&P 500 posted 12 new highs and 4 new lows; the Nasdaq recorded 58 new highs and 43 new lows.
