In a historic move, the Pakistan Stock Exchange (PSX) shattered previous records on Tuesday, with the KSE-100 Index climbing above the 143,000 mark for the first time ever.
Investor optimism fuelled a fresh buying rally that carried over from Monday’s bullish session, as hopes of economic recovery and global tailwinds boosted sentiment across the board.
The KSE-100 Index surged to an intraday peak of 143,281.34 before settling at 143,037.16 by the end of the trading day. That’s a solid 984-point gain or a 0.69% jump from the previous close, reflecting the market’s growing confidence in Pakistan’s economic direction.
This upward streak wasn’t a one-day wonder. On Monday, the index had already risen by 1,017 points to close at 142,052.65, setting the stage for Tuesday’s breakout performance.
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Market watchers say a mix of local and global factors is driving the rally. Positive cues from macro-economic indicators, improving Pak-US relations, and strong corporate earnings forecasts have sparked renewed interest among both retail and institutional investors.
Adding to the optimism, global equity markets have also been climbing. Asian markets posted a second straight day of gains, while US stocks rallied on upbeat earnings and speculation about an interest rate cut in September.
According to the CME FedWatch tool, the odds of a US Federal Reserve rate cut next month have jumped to 94%—a notable rise from 63% last week. This shift in expectations has buoyed global investor confidence and extended support to emerging markets like Pakistan.
The buying rally was particularly strong in index-heavy sectors, such as commercial banks, automobile assemblers, cement, fertiliser, and Oil Marketing Companies (OMCs). Stocks like MCB, MEBL, UBL, INDU, and SNGPL were among the top gainers, trading comfortably in the green.
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Gas sector players, especially SNGPL and WAFI, also saw significant investor activity. Brokers say the strong momentum in these segments signals deeper investor belief in the country’s economic stability and growth potential.
Over 550 million shares were traded during the session, with a total market value exceeding Rs 37 billion. Analysts say these strong volumes underline how investors are responding positively to recent macro-economic indicators and improved policy clarity.
Asia-Pacific shares rose, with MSCI’s index (excluding Japan) gaining 0.6%. Japan’s Nikkei rebounded by 0.5%, erasing Monday’s dip. Meanwhile, oil prices remained under pressure due to increased output from OPEC+ and geopolitical concerns involving US-India trade ties.
