PSX Crosses 150,000 Points Mark for the First Time
The Pakistan Stock Exchange (PSX) achieved a historic milestone on Wednesday as the KSE-100 index closed at 150,591 points, up 820 points (+0.55%). The rally was powered by Moody’s Ratings upgrade of five major Pakistani banks, strong corporate earnings, and robust support from local institutional investors.
Earlier in the session, the benchmark index hit an intra-day peak of 151,262 points, reflecting unshaken investor confidence and strong liquidity in the market.
Key Drivers of the Rally
According to Ahsan Mehanti of Arif Habib Corp, the market closed at an all-time high after Moody’s raised both local and foreign-currency long-term deposit ratings of top banks from Caa2 to Caa1, following the sovereign rating upgrade.
He said:
“Upbeat data showing a $284 million current account deficit amid strong remittances, rising exports, and rupee stability powered the market’s record close.”
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Corporate earnings: Better-than-expected results lifted sentiment.
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Banking sector performance: Banks were the biggest contributors to the rally.
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Liquidity push: Strong buying from local institutions reinforced the bullish undertone.
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Sector-Wise Performance
The rally was largely fuelled by index heavyweights, with contributions coming from:
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Systems Limited (+3.52%)
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Bank AL Habib
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NBP (+3.53%)
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MCB Bank
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Bank Alfalah
These stocks alone added 503 points to the upward trajectory.
On the flip side, Engro Fertilisers (-1.29%), Engro Holdings (-1.10%), and Fauji Fertiliser (-1.05%) dragged the index down slightly.
Macro and External Factors
The market’s strength also reflected broader economic trends:
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Current account deficit for July 2025 stood at $254 million, improving from $348 million deficit in July 2024.
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IT and ITeS exports surged 24% year-on-year to reach $354 million in July.
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Foreign investors, however, sold shares worth Rs1.92 billion, according to the National Clearing Company.
Market Activity and Trading Volume
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Total shares traded: 667.8 million (down from 809.1 million on Tuesday)
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Trading value: Rs40.7 billion
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Companies traded: 487 (240 advanced, 216 declined, 31 unchanged)
The Bank of Punjab led volumes with 52.3 million shares, followed by WorldCall Telecom and Fauji Foods.
Investor Outlook
Reports from Topline Securities and KTrade Securities suggest that while the bullish sentiment is expected to continue, some profit-taking and consolidation may occur at record-high levels.
With Moody’s upgrade improving outlook for the banking sector and corporate earnings exceeding expectations, the market is likely to remain in bullish territory in the near term.
Conclusion
The PSX’s climb above 150,000 points marks a historic milestone for Pakistan’s capital markets. Strong institutional support, Moody’s ratings upgrade, and robust earnings have boosted investor confidence.
Looking ahead, while some consolidation is expected, the banking and technology sectors are likely to remain key drivers of growth, supported by positive macroeconomic indicators.
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