KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking buying rally on Tuesday, with the KSE-100 Index closing at a new all-time high of 165,493.58, up 1,645.90 points or 1%.
The benchmark index reached an intra-day high of 166,556.29 before settling at its close.
The rally came as Pakistan and the International Monetary Fund (IMF) began talks for the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF) on Monday.
Discussions focused on fiscal performance, revenue collection, spending discipline, and progress on structural reforms.
Sana Tawif, Head of Research at Arif Habib Limited, said the IMF does not foresee significant economic disruptions from the recent floods, offering a positive outlook. She projected inflation for September to remain between 5.5% and 6%, despite some increase in food prices due to the floods.
Saad Hanif of Ismail Iqbal Securities attributed the buying momentum to high domestic liquidity and a positive economic outlook. He noted that corporate earnings, particularly in the banking, energy, and fertiliser sectors, remain strong, offering attractive valuations and dividend yields.
The analyst also highlighted a shift in global perceptions of Pakistan, with the country now seen as a resilient strategic player, boosting investor confidence.
On Monday, the KSE-100 gained 1,590.68 points, or 0.98%, closing at 163,847.69, continuing the bullish momentum.
