The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Tuesday, surpassing the 166,000-point milestone for the first time in history. The benchmark KSE-100 index touched an intraday peak of 166,556.29, marking a jump of 2,708.61 points or 1.65 percent. Even at its lowest point of the day, 164,208.33, the index remained in positive territory, up by 360.65 points or 0.22 percent.
The latest surge underscores the bullish momentum that has gripped the market over the past week, fueled by a mix of strong corporate earnings, fresh liquidity, and a broader sense of confidence in government-led reforms. Market observers say the appetite for equities continues to strengthen, with institutional investors and retail participants actively pushing the rally forward.
According to Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, the upward drive reflects both earnings performance and ample liquidity. “Strong corporate results and additional liquidity in the market, with a preference for equities, are pushing the market higher,” he said.
This marks the third consecutive session of record-breaking performance. On Monday, the index closed at an all-time high of 163,847 points, gaining 1,590 points or 0.98 percent, with mutual funds and local institutions leading the charge. The rally began earlier this week when the index crossed 162,000 points for the first time, supported by a blend of domestic and external developments.
Key factors adding fuel to the rally include the government’s Rs1.275 trillion financing arrangement with 18 commercial banks to address the power sector’s chronic circular debt and the signing of a strategic defence agreement with Saudi Arabia, which has raised expectations of enhanced bilateral trade and potential financial support. Both measures are seen as strengthening Pakistan’s economic outlook at a time when investors are seeking policy clarity and stability.
Yousuf M. Farooq, director of research at Chase Securities, highlighted the optimistic phase of the market. “The market is firmly in its optimism phase, supported by signs of an economic recovery and a steadily improving geopolitical news flow,” he said. He added that new retail participation, alongside mutual fund inflows, is broadening market depth and driving turnover.
Investors are now closely monitoring Pakistan’s ongoing review with the International Monetary Fund (IMF). Market sentiment remains constructive, with expectations that the review will conclude without major disruptions, reinforcing risk appetite and sustaining the rally. However, analysts caution that meeting IMF targets will remain a key challenge for fiscal stability, and any setbacks in negotiations could temper the market’s momentum.
The PSX rally reflects a rare convergence of positive earnings reports, geopolitical support, and improved investor sentiment, creating conditions for a historic climb. For now, the market appears well-positioned to sustain upward momentum, provided macroeconomic indicators and reform commitments remain intact.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.