The Pakistan Stock Exchange (PSX) extended its bullish run on Wednesday as the benchmark KSE-100 Index surged nearly 1,000 points to close at an all-time high of 117,974.02. Investor confidence remained strong throughout the session, with the index touching an intraday peak of 118,243.63 before settling with a gain of 972.93 points or 0.83%.
Buying interest was observed across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, power generation, and refineries. Among the notable performers, PRL, NRL, HUBCO, PSO, MARI, OGDC, PPL, HBL, NBP, and UBL closed in the green, contributing significantly to the index’s upward movement.
Market analysts attributed the rally to multiple positive factors. According to Saad Hanif, Head of Research at Ismail Iqbal Securities, recent reports indicating progress in addressing the country’s longstanding energy sector circular debt have boosted sentiment, particularly for energy-related stocks. The government’s plans for debt refinancing to ease financial stress in the power sector have further reinforced investor optimism.
Additionally, the International Monetary Fund (IMF) recently acknowledged Pakistan’s progress under the Extended Fund Facility (EFF) programme, fuelling expectations of an imminent Staff Level Agreement (SLA). “The market remains hopeful that a formal SLA will be finalised soon, which would unlock further funding and improve economic stability,” Hanif stated.
Another major catalyst has been the anticipated reduction in electricity tariffs. Market participants are optimistic that the government’s expected announcement on March 23 regarding lower power rates will provide relief to industries and consumers, further stimulating economic activity and corporate earnings.
Meanwhile, trading volumes have steadily improved since the start of Ramadan, reflecting increased buying activity. “Volumes are picking up, indicating sustained investor interest in the equity market,” noted Sana Tawfik, Head of Research at Arif Habib Limited (AHL). “Given the current momentum, we expect this trend to continue in the coming sessions.”
Geopolitical risks continued to loom large, with fresh Israeli airstrikes in Gaza and renewed tensions between Russia and Ukraine unsettling global investors. These developments kept international equity markets on edge, though their impact on the PSX remained minimal as local factors dominated sentiment.
In the broader market, total trading volume on the All-Share Index rose to 544.20 million shares from 449.48 million in the previous session, while the total value of traded shares increased to Rs32.31 billion from Rs29.18 billion.
As Pakistan’s equity market continues its record-breaking rally, analysts remain cautiously optimistic, emphasising the need for economic and policy stability to sustain investor confidence. The coming weeks will be crucial as market participants await further clarity on key economic measures, including the IMF deal and government fiscal policies, which will shape the trajectory of the PSX in the near term.
