PSX hits fresh new high as investor confidence peaks before policy decision

KARACHI: The Pakistan Stock Exchange (PSX) scaled a new historic peak on Tuesday, extending its bullish run as strong investor interest lifted the benchmark index to an all-time high, while the rupee showed marginal improvement against the US dollar.

The benchmark KSE-100 index touched 171,866.77 points on Tuesday morning, with over a 1,000 points gains within hours of trading. Momentum remained positive despite a slight lowering of the gains during early morning stock movement. The market built on gains from the previous trading day when the index had already closed near record territory at 170,741.34 points.

By the end of trading, the market remained firmly in positive territory, reflecting sustained buying interest across key sectors. Analysts attributed the rally largely to energy stocks, which continued to attract investors amid optimism over sector reforms and expectations surrounding monetary policy.

Market sentiment was further supported by the State Bank of Pakistan’s surprise decision to cut the policy rate by 50 basis points to 10.5 per cent, boosting confidence in equities. Oil and gas, banking, cement and technology stocks were among the leading contributors to the index’s advance.

Trading activity stayed robust, with healthy volumes indicating strong participation from both institutional and retail investors. Market participants noted that the index’s ability to hold above key psychological levels reinforced the positive outlook in the near term.

Meanwhile, the Pakistani rupee posted a slight gain in the interbank market. According to exchange companies, the US dollar eased by one paisa to trade at Rs 280.30, adding to the improved sentiment across financial markets.

Analysts say the combination of easing monetary conditions, progress on energy-sector issues and steady foreign interest has strengthened the broader market outlook, keeping equities on a firm footing.