The Pakistan Stock Exchange (PSX) surged to an all-time high on Tuesday, driven by renewed investor confidence following assurances of institutional support for economic stability and progress. A high-level meeting between prominent business figures and Army Chief Asim Munir bolstered market sentiment, with further support from recent Senate election wins and expectations of monetary easing from the State Bank of Pakistan (SBP).
The KSE-100 index soared by 1,684 points during intra-day trading before closing at 139,419.62, marking a net gain of 1,202.03 points or 0.87% — a new record for the exchange.
According to Ahsan Mehanti of Arif Habib Corp, the index’s strong performance reflected confidence after the military’s expressed commitment to supporting Pakistan’s economy. The government’s success in securing a majority in the Senate and growing speculation over potential SBP policy rate cuts further lifted investor mood.
Market Rally Fueled by Earnings and Dividends
Analysts at Topline Securities noted that bulls dominated the trading session, thanks to optimism around upcoming corporate earnings reports and anticipated dividend payouts. This renewed enthusiasm set a positive tone across the board, with market momentum suggesting a bullish outlook for the rest of the week.
Engro Holdings, HBL, Fauji Fertiliser Company (FFC), Engro Fertilisers, Pakistan Petroleum, and OGDC were among the top contributors, collectively adding 1,142 points to the KSE-100 index.
Vibrant Trading Activity
-
Total volume: 629 million shares
-
Traded value: Rs34.7 billion
-
Advancers: 268
-
Decliners: 178
-
Unchanged: 32
First Dawood Properties led in volume with 44.1 million shares traded, closing at Rs7.64 after gaining Rs1. WorldCall Telecom followed with 26.4 million shares, while PTCL recorded a strong finish with 24.9 million shares, closing at Rs23.96.
Technical Analysis & Sector Performance
According to Arif Habib Limited (AHL), price action above the 137,200–138,200 zone may push the index towards the weekly target of 140,500 points. However, a break below 137,000 could prompt a correction to 135,000, where attractive stock valuations and rate cut expectations might reignite buying.
Nestlé Pakistan Reappoints Joselito Jr. Avancena as CEO and Names Syed Yawar Ali Chairman
The fertilizer sector led Tuesday’s gains, with Engro Holdings, FFC, and Engro Fertilisers experiencing heavy buying driven by optimism over financial results and dividend declarations.
Buying interest was also seen across key sectors including:
-
Commercial Banks
-
Cement
-
Oil & Gas Exploration
-
Oil Marketing
-
Power Generation
-
Refineries
Foreign Activity & Institutional Flows
Foreign investors sold equities worth Rs375.5 million, as per National Clearing Company of Pakistan Limited (NCCPL). Despite this, local investors and institutional buying dominated the session, highlighting confidence in the country’s economic outlook and policy direction.
Conclusion
With strong earnings expectations, renewed institutional backing, and signs of macroeconomic improvement, the PSX rally underscores growing investor optimism. If the anticipated SBP rate cut and corporate earnings season align with expectations, the index may maintain its upward momentum — signaling a positive trend for Pakistan’s equity market in the near term.
Further links:Â Visit PSX
