Buying momentum continued at the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark KSE‑100 Index closed higher by 1%, reflecting sustained confidence among local investors and positive macroeconomic signals. The equity market opened with a positive bias and maintained the upward trend throughout the session, settling at 186,900.74 points, up 1,842.91 points or 1% from the previous close of 185,057.83.
Market observers attributed the upbeat trading to continued buying by local institutions, which helped reinforce investor confidence and underpin the day’s gains. Institutional demand remained a key driver of the positive close, with significant contributions from several heavyweight stocks.
Among the major contributors to the rally were FFC, UBL, ENGROH, MEBL, and SYS, which collectively added hundreds of points to the benchmark. These stocks, alongside broader participation across key sectors, helped sustain the broad‑based advance in the PSX.
Investor sentiment was further bolstered by macroeconomic developments, including news that Pakistan’s goods exports exceeded the $3 billion mark for the first time in January, highlighting improving external trade dynamics. Market participants also took note of a reported rollover of $2 billion from the United Arab Emirates for one month, as Pakistan continues negotiations to restructure terms and tenure of two $1 billion loan agreements. These developments appeared to reinforce confidence in the country’s economic outlook and supported risk‑taking in equities.
The local currency displayed marginal strength during the session, with the Pakistani rupee posting a slight gain against the US dollar in the interbank market. At close, the rupee settled at 279.75, registering a modest improvement that paralleled the positive equity market performance.
Trading activity improved compared to the previous session, with volume on the all‑share index increasing to 848.56 million shares from 740.09 million. The value of shares traded also rose, indicating heightened participation among investors. K‑Electric Ltd led the volume board with 99.51 million shares traded, followed by F. Nat. Equities and The Bank of Punjab, which also recorded strong turnover. A total of 486 companies were active during the session, with 294 posting gains, 145 closing lower, and 47 remaining unchanged.
The positive outcome followed a mixed session on Monday, when the PSX exhibited volatility but ultimately closed higher by nearly 900 points as cautious buying emerged later in the trading day. Analysts noted that range‑bound trading earlier in the week gave way to renewed confidence as investors absorbed improving economic indicators and selective buying pressure from institutional participants.
International markets also reflected calmer trading conditions, with Asian equities and commodities rebounding alongside improved risk sentiment after recent volatility in metals markets. Global cues appeared to moderate local risk perceptions, encouraging renewed investor engagement ahead of a busy earnings season and upcoming economic data releases.
Overall, Tuesday’s session underscored the resilience of Pakistan’s equity markets in the face of evolving economic conditions. With continued support from institutional buyers and improving macroeconomic fundamentals, the PSX maintained its positive trajectory, offering optimism for further gains in the near term.
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