Bulls smash 165,000 barrier as PSX rally continues

The capital market broke more records on Tuesday, surpassing 166,000 points for the first time, as upbeat economic signals and strong foreign ties sustained investor confidence.

“Stocks reached a new all-time high at the quarter-end close as investors weighed upbeat Pak–US relations," said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"Resolve over Rs1.225 trillion circular debt, and rupee stability on Saudi FDIs commitments following the Pak–Saudi defence pact played a catalyst role in record bullish activity at PSX,” he added.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 165,493.58 points, up 1,645.90 points, or 1%, from the previous close of 163,847.68.

During the session, the index climbed to an intraday high of 166,556.29, gaining 2,708.61 points, or 1.65%, and hit a low of 164,208.33, reflecting a rise of 360.65 points, or 0.22%.

Investor confidence remains buoyant after yesterday’s record-setting rally, underpinned by high-level engagement with the US, a landmark Rs1.225 trillion circular-debt financing arrangement with commercial banks, and renewed optimism around Saudi economic involvement.

Analysts see near-term momentum persisting — particularly in banks, energy and power — while noting that IMF conditionalities and external funding flows remain key risks.

Sentiment has also been supported by efforts to broaden external financing— including planned Panda bonds and additional commercial borrowings—alongside a recent uptick in foreign exchange reserves.

The State Bank reported a $22 million increase to $14.4 billion (as of September 19, 2025), with the rupee firming 0.03% to Rs281.37 per US dollar.

Separately, the Asian Development Bank said in its ADO September 2025 that Pakistan’s real GDP growth is expected at 3% in FY26, with inflation potentially rising to 6%.

The lender credited improved macro conditions and reform progress under the IMF EFF (since Oct 2024), but cautioned that policy consistency and climate resilience are vital, and that recent flood damage could weigh on growth even as external buffers and business confidence improve following the US-Pakistan trade agreement.

On Monday, the benchmark rose 1,590.68 points, 0.98%, to 163,847.69, after touching an intraday high of 163,903.62 and a low of 162,058.64.