The Pakistan Stock Exchange (PSX) rallied on Tuesday, with the benchmark KSE-100 Index soaring more than 1,000 points as investors cheered stable interest rates and upbeat corporate earnings expectations.
By 10:05am, the KSE-100 Index had climbed 948.95 points, or 0.61%, to trade at 156,333.45. Later in the session, the index extended gains to settle above 156,000, closing at 156,468 after adding 1,083 points.
Buying was strong across major sectors including automobiles, commercial banks, cement, fertiliser, oil and gas exploration, refineries, power generation, and OMCs.
Heavyweights such as ARL, HUBCO, MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC, DGKC, HBL, MCB, MEBL and UBL all traded in positive territory.
Policy rate maintained at 11%
As anticipated, the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) left the policy rate unchanged at 11%. Analysts noted the central bank’s cautious stance reflected concerns over the economic impact of recent floods on near-term growth.
A leading market analyst said, “Good financial results of companies are expected to drive the market forward, while stable interest rates provide an additional layer of confidence for investors.”
International cues support sentiment
Globally, Asian equities rose on Tuesday while the US dollar softened ahead of the US Federal Reserve’s policy decision. Investors widely expect the Fed to resume its rate-cutting cycle this week, with a 25-basis-point reduction already priced in.
MSCI’s broadest index of Asia-Pacific shares outside Japan touched a four-year high, while Japan’s Nikkei and Topix indices hit fresh records. Futures markets currently price in 127 bps worth of Fed cuts by July 2026.
The PSX had already gained nearly 945 points on Monday, setting a positive tone for the week. With strong corporate results and global market optimism, analysts believe momentum could continue in the near term. However, much will depend on how international monetary policies and domestic economic conditions evolve.
