Bulls charge ahead at PSX, KSE closes at over 1800 point increase

Bulls stayed firmly in control at the Pakistan Stock Exchange (PSX) on Tuesday, with the KSE 100 index increasing by more than 1800 points at time of close.

According to the PSX website, the market opened on a positive note and the benchmark index posted gains in the early hours of trading. The KSE-100 went up to a high of 187,518.78 points, before closing at 186,900.73, an increase of 1842.90 points, or 1%, from the previous close of 185,057.83 points. 

Gains were seen in automobile, cement, chemical, banking, fertiliser, pharmaceutical, technology and oil marketing company stocks. Today’s rally followed a volatile session on Monday, when the index moved both ways before closing higher by 883.35 points, or 0.48%, at 185,057.83.

Market participants largely shrugged off news of a US–India trade agreement that reduced US tariffs on Indian goods to 18%, slightly below Pakistan’s 19%. The agreement involves India lowering trade barriers and adjusting its oil import strategy. The development did not trigger negative sentiment at the local bourse.

On the macroeconomic front, Pakistan’s headline inflation edged up to 5.8% YoY in January 2026, compared with 5.6% in December, according to the Pakistan Bureau of Statistics. 

Trade data also showed some near-term improvement, with Pakistan posting a trade deficit of $2.7 billion in January, narrower than the previous month amid stronger exports and lower imports. Exports rose to $3.1 billion, up 3.7% YoY and 35.0% MoM, lifting monthly export receipts above the $3 billion mark. However, during 7MFY26, the cumulative trade deficit widened to $22.0 billion, up 28.2% YoY, compared with $17.2 billion in the same period last year.

Meanwhile, the UAE rolled over $2 billion in Pakistan’s debt for one month at a 6.5% interest rate, providing temporary relief to foreign exchange reserves as talks continue on longer-term restructuring. The rollover covered two $1 billion loans that matured on January 16 and January 22, with Pakistan seeking a two-year extension at around 3% interest. 

Internationally, Asian markets rebounded on Tuesday alongside a recovery in gold prices, as trading conditions stabilised after sharp swings in metals markets. Japan’s Nikkei rose 2.5% and South Korea’s KOSPI gained 4%, while futures indicated a positive opening for Hong Kong equities. S&P 500 futures were up 0.3% as investors looked ahead to a busy earnings calendar.

In Australia, shares advanced 1.3% in early trade ahead of a central bank meeting, where markets are pricing in a possible 25 basis point rate hike following strong labour data and higher-than-expected inflation. The Australian dollar was steady at $0.6958.

Precious metals also rebounded after recent volatility triggered by US President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair. Gold rose about 3% in Asian trading to around $4,800 an ounce, nearly 9% above Monday’s lows, while silver gained 5% to $83.34 an ounce.