The Pakistan Stock Exchange (PSX) witnessed a powerful rally on Wednesday as the KSE-100 Index reached new heights, soaring past the 121,000-point mark for the first time. The surge came amid renewed investor confidence, largely attributed to successful ongoing discussions with the International Monetary Fund (IMF) regarding the federal budget and growing anticipation of financial support from global institutions.
The benchmark KSE-100 Index posted a significant gain, closing at 121,798.86 points — a jump of 1,347.99 points or 1.12%. Intraday, the index touched an all-time high of 121,882.47, reflecting sustained investor enthusiasm and strong buying activity across key sectors.
Sana Tawfik, Head of Research at Arif Habib Limited (AHL), attributed the sharp upward trend to improved market valuations. “Valuations have become attractive, which is driving the current buying momentum,” she explained during a conversation with Business Recorder. Her remarks reflect the broader sentiment in the financial sector that the market rebound is grounded in fundamental improvements and positive macroeconomic signals.
This historic milestone builds upon Tuesday’s performance, where the PSX also closed at a record high. The KSE-100 index climbed 1,573.07 points or 1.32%, ending the session at 120,451 points. That session marked the first time the index had crossed the 120,000 mark at close, setting the tone for the upward momentum seen the following day.
Adding fuel to the rally, news emerged that the Asian Development Bank (ADB) had approved $800 million in financing for Pakistan. This development boosted investor confidence and reinforced market expectations for enhanced liquidity and economic stability in the months ahead.
On the global front, regional markets also showed signs of recovery. Asian stocks edged higher, supported by easing fears over escalating trade tensions and improving investor sentiment. The dollar traded near six-week lows as traders braced for new US tariffs on steel and aluminium, stirring concerns over prolonged trade disputes.
In South Korea, both the stock market and the national currency saw significant gains following the electoral victory of liberal presidential candidate Lee Jae-myung. The win has sparked hopes of rapid economic reforms and stimulus measures to counter uncertainty.
The KOSPI index in South Korea surged over 2%, hitting its highest point since August 2024. Elsewhere, the MSCI Asia-Pacific index outside Japan rose by 0.6%, with Japan’s Nikkei gaining 0.8% and Taiwan stocks climbing 1.6%. A rally in US equities driven by artificial intelligence giant Nvidia also played a role in bolstering global investor sentiment.
Meanwhile, fresh labor market data from the US indicated mixed signals, with job openings rising but layoffs also increasing — a sign that the employment landscape is beginning to cool amid tariff-induced economic uncertainty.
All eyes remain on the evolving geopolitical dynamics, particularly the anticipated call between US President Donald Trump and Chinese President Xi Jinping, as the two nations navigate another phase in their complex trade relationship.
Back in Pakistan, market watchers are optimistic that continued stability in macroeconomic negotiations and the upcoming federal budget will maintain positive momentum at the PSX, potentially setting the stage for further records in the weeks ahead.