The Pakistan Stock Exchange (PSX) surged to a record high on Tuesday, with the KSE-100 Index climbing by 1,202.03 points, or 0.87%, to close at 139,419.62. The rally was driven by renewed investor confidence following a high-level meeting between business leaders and Army Chief General Asim Munir, where assurances of institutional support for Pakistan’s economic progress were made. This provided a significant boost to market sentiment.
Investor optimism was further fueled by the government’s recent success in securing a majority in the Senate election sand speculation surrounding an anticipated monetary easing by the State Bank of Pakistan (SBP). Market participants are also expecting strong corporate earnings during the earnings season, which contributed to the bullish sentiment at the PSX.
Ahsan Mehanti, Director at Arif Habib Corp, noted that the meeting between business leaders and the Army Chief had positively impacted market sentiment, pushing stocks to new highs. He highlighted that the combination of the Senate election victory and speculation about SBP’s policy changes drove investor confidence. Additionally, the bullish trend was reinforced by forecasts of strong financial results and the expectation of annual payouts in the upcoming earnings season.
In its market review, Topline Securities emphasised that the bullish momentum returned to the market on Tuesday, with the KSE-100 Index reaching an intraday high of 1,684 points before closing at 139,420, a solid gain of 1,202 points. The firm also noted that the renewed investor confidence and the upcoming announcement of strong corporate results set a positive tone for the week.
Trading volumes on Tuesday reached 629 million shares, an increase from 608.2 million shares traded on Monday. The total traded value stood at Rs. 34.7 billion. Out of the 478 companies traded, 268 stocks closed higher, 178 stocks fell, and 32 remained unchanged. First Dawood Properties was the volume leader with 44.1 million shares traded, closing at Rs. 7.64 per share, gaining one rupee.
After a slight dip on Monday, the KSE-100 Index bounced back strongly, reflecting positive market sentiment. The index had dropped by 379.78 points or 0.27% on Monday, largely due to investor profit-taking ahead of July’s end and cautious sentiment following a record-breaking rally.
