The Pakistan Stock Exchange (PSX) witnessed a strong rally on Tuesday as investor confidence grew on the back of stable interest rates and expectations of solid corporate earnings.

The benchmark KSE-100 Index climbed more than 1,000 points, crossing the 156,000 milestone.

By 10:05am, the index was already up 948.95 points to 156,333.45, and it continued to build on gains throughout the day, finally closing at 156,468 after rising 1,083 points.

Buying interest was broad-based, with major sectors including automobiles, banks, cement, fertiliser, energy, and power all performing positively. Market giants such as OGDC, PPL, HUBCO, HBL, and MCB led the way.

The upbeat momentum followed the State Bank of Pakistan’s decision to keep the policy rate steady at 11%, a move that reassured investors concerned about the impact of recent floods on economic growth.

Analysts said the combination of stable interest rates and upcoming strong financial results provided a solid base for optimism. International markets also boosted sentiment.

Asian shares surged to multi-year highs, while the U.S. dollar weakened as investors awaited the Federal Reserve’s policy decision, widely expected to resume rate cuts.

A friendlier global environment further strengthened hopes for sustained gains at the PSX.

Analysts caution that while the outlook appears positive, Pakistan’s market performance will remain tied to international monetary policies and domestic economic conditions.

For now, however, the rally reflects investor faith in resilience, stability, and opportunities for growth despite broader challenges.