The Pakistan Stock Exchange (PSX) witnessed sustained bullish momentum on Tuesday as investor confidence remained high following Monday’s historic rally. The benchmark KSE-100 index added another 1,278 points to close at 118,575, marking a 1.08 percent increase over the previous day’s close. This upward movement builds on the record-breaking performance seen a day earlier, when the index surged by more than 10,000 points in its largest-ever single-day gain.
The rally, which began on Monday, was driven by two major developments that restored investor confidence and triggered heavy buying across sectors. First, a US-brokered ceasefire between Pakistan and India created a sense of geopolitical stability in the region. Second, the International Monetary Fund (IMF) approved financial assistance packages for Pakistan totaling around $2.4 billion. These factors combined to set off a wave of positive sentiment among both institutional and retail investors.
According to the IMF’s statement on Friday, Pakistan will receive an immediate disbursement of approximately $1 billion under the ongoing Extended Fund Facility (EFF). In addition, the IMF approved an arrangement for $1.4 billion under the Resilience and Sustainability Facility (RSF), aimed at supporting long-term structural reforms and climate resilience. This dual injection of capital is seen as a lifeline for the country’s economy, which has been grappling with external debt pressures and slow growth.
The geopolitical breakthrough also played a crucial role in lifting investor morale. On Monday, US President Donald Trump confirmed that his administration had facilitated the ceasefire between Pakistan and India. He emphasized that economic interests, particularly bilateral trade, were a major factor behind the de-escalation, noting that the United States remains committed to helping both nations move towards peaceful cooperation.
Market activity remained strong throughout Tuesday’s session. Trading volume reached over 684 million shares, slightly down from 730 million shares traded on Monday. However, the total value of traded shares surged to Rs. 52.58 billion, up significantly from Rs. 30.32 billion on the previous trading day. This indicates that while the volume dipped slightly, high-value transactions dominated the session.
In total, 461 companies took part in trading. Of these, 220 recorded gains, 194 suffered losses, and 47 remained unchanged. The market breadth suggests a broad-based rally, with a significant number of stocks experiencing upward movement, reflecting widespread optimism.
The continued buying at PSX signals renewed investor trust in the market’s short-term trajectory, fueled by macroeconomic stability signals and diplomatic progress. Analysts suggest that if positive developments continue on both the economic and political fronts, the benchmark index could cross the 119,000 mark in the coming sessions. However, they also caution that sustained momentum will depend on timely execution of the IMF programs and continued de-escalation in the geopolitical climate.
As investors await further clarity on policy implementation and regional stability, the market’s performance over the next few days will be crucial in determining whether this rally turns into a longer-term bull run or faces correction. For now, confidence at the Pakistan Stock Exchange appears to be holding strong, buoyed by a combination of financial support and diplomatic breakthroughs.