The Pakistan Stock Exchange (PSX) continues to defy expectations, as the benchmark KSE-100 Index surged past the 143,000-point milestone on Tuesday, closing at an all-time high of 143,037.16. This marks an impressive gain of 984.52 points or 0.69%, driven by robust investor sentiment and consistent buying activity across key sectors.
Market participants witnessed a strong upward trajectory throughout the day, with the index hitting an intra-day high of 143,281.34. The rally was primarily led by index-heavy sectors such as automobile assemblers, commercial banks, cement, fertilisers, and oil marketing companies (OMCs). Notable gainers included Sui Northern Gas Pipelines Limited (SNGPL), WAFI Energy, Indus Motor Company (INDU), MCB Bank, Meezan Bank (MEBL), and United Bank Limited (UBL), all of which traded firmly in the green.
This remarkable performance follows another bullish close on Monday, when the KSE-100 Index climbed by 1,017 points or 0.72% to settle at 142,052.65. Investors were buoyed by positive corporate disclosures, optimism around upcoming earnings reports, and a steady inflow of capital into equities, all of which created a conducive environment for continued gains.
The persistent rally in the domestic market is also supported by encouraging signals from global markets. In Asia, shares posted gains for a second straight session, while the US dollar held onto most of its recent losses. Investors around the world are recalibrating expectations around monetary policy, particularly the likelihood of rate cuts by the US Federal Reserve.
In the United States, stock indices recorded gains on Monday amid broadly positive earnings results and rising expectations of a September interest rate cut. The jobs data released last Friday, which fell short of estimates, has further strengthened market sentiment that the Fed may act sooner than expected to stimulate the economy.
Meanwhile, oil prices remained under pressure, weighed down by OPEC+’s decision to increase output and political signals from the US administration. President Donald Trump’s comments about potentially raising tariffs on Indian imports, specifically those involving Russian oil purchases, added further uncertainty to global commodity markets.
Asian indices reflected cautious optimism, with Japan’s Nikkei advancing by 0.5%, recovering from its sharpest drop in two months on Monday. The country’s service sector showed signs of strong expansion in July, providing a lift to overall investor confidence in the region.
The MSCI Asia-Pacific index, excluding Japan, gained 0.6% during early trading hours. All eyes are now on central bank movements, with CME FedWatch data indicating a 94% probability of a US rate cut in September, significantly higher than the 63% odds seen just a week ago. Market forecasts also suggest two more quarter-point cuts before the end of 2025.
Back home, analysts believe that the PSX’s sustained rally reflects growing investor trust in the market’s fundamentals and confidence in Pakistan’s macroeconomic outlook. With corporate earnings season approaching and reforms in key sectors underway, the momentum in equities may persist, provided external economic conditions remain stable.