The Pakistan Stock Exchange delivered a stellar performance, buoyed by positive sentiment surrounding the ongoing International Monetary Fund review and strong buying interest in banking stocks.
Investors appeared upbeat amid optimism that the country would successfully pass the IMF’s first quarterly review under the new loan program, paving the way for further disbursements and fiscal support.
By the end of the trading session, the benchmark KSE-100 index surged by 1,645.90 points, or 1.00%, to close at 165,493.58. Intra-day, the index touched a high of 166,556.29 and a low of 164,208.33, reflecting strong upward momentum. Trading volumes remained robust, with 629.99 million shares changing hands across the board.
Once again, banking stocks stole the spotlight, leading gains across the financial sector. Expectations of rising interest rates and improving profitability in the banking space encouraged institutional buying. Other major sectors, including energy and cement, also contributed to the rally.
The upbeat close is being seen as a vote of confidence in the market’s medium-term trajectory, especially with economic reforms and fiscal consolidation efforts gaining traction. Market participants are now closely watching the outcome of the IMF review, which could further influence foreign investor sentiment in the coming weeks.
AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune that investor sentiment remains positive on expectations of a successful IMF programme review and prospects of foreign direct investment, supported by improving ties with the US and Saudi Arabia. “The absence of attractive alternative investment options is directing inflows toward equities, which remain appealing relative to their historical valuations and regional as well as global markets.
Furthermore, the impact of floods has turned out to be far less severe than initially anticipated. Ashraf recalled that the index performed in line with their December 2024 research and reached 165,215 points. KTrade Securities wrote in their market wrap that PSX closed on another strong note today, with the KSE-100 index gaining 1,645points (+1.00% day-on-day (DoD) to a new record high of 165,493points.
The rally was driven primarily by the banking sector, with notable contributions from UBL, HBL, MEBL, BAHL, along with ENGROH, SYS, LUCK, and HUBC. Investor participation remained robust, as All-Share Index volume hit 1.34 billion shares.
Positive sentiment continued, buoyed by the Pakistan–Saudi defense pact, circular debt reduction plan for the energy sector, and Prime Minister Shehbaz Sharif’s meeting with US President Trump, signaling improved international engagement and driving broadbased investor interest, KTrade added.
Overall trading volume increased to 1.34 billion shares versus Monday’s tally of 1.28billion. Value of shares stood at Rs76.77 billion. Stocks of 488 companies were traded. Of these, 176 closed higher, 288 flopped and 24 remained unchanged. WorldCall Telecom was the volume leader with trading in 113.6 million shares, falling Rs0.08 to close at Rs1.74
