A day after a sharp selloff, bullish momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday, propelling the benchmark KSE-100 Index to a fresh all-time high of 120,450.87, up 1,573.07 points or 1.32% from the previous close.
Investor confidence surged following Prime Minister Shehbaz Sharif’s assurance that talks with the International Monetary Fund (IMF) on the upcoming federal budget had concluded successfully, signalling policy continuity and paving the way for a new phase of economic growth.
“Market participants showed positive sentiments today, following the Prime Minister’s statement,” said Waqas Ghani, Head of Research at JS Global. He added that the IMF-related developments had recharged investor appetite for equities.
The index remained in positive territory throughout the day, touching an intraday high of 120,693.83 and a low of 119,129.51, with a total volume of 315.24 million shares traded on the KSE-100.
Samiullah Tariq, Head of Research at Pakistan Kuwait Investment Company, said the rally also reflects growing confidence in the government’s commitment to IMF-backed structural reforms, which are seen as essential for sustainable economic growth. Continued corporate earnings momentum across key sectors and a relatively stable macroeconomic outlook further supported the bullish trend, he added.
The rebound follows Monday’s volatile session when the KSE-100 shed over 800 points, ending the day down 813.29 points or 0.68%, closing at 118,877.80 as late-session profit-taking erased early gains.
Tuesday’s sharp recovery suggests that investors remain optimistic about the market’s medium-term trajectory, especially if the upcoming budget reinforces macroeconomic stability and development-focused reforms.
