The Pakistan Stock Exchange (PSX) kicked off the New Year with strong momentum, closing at a new record high as investors priced in expectations of a key interest rate cut by the State Bank of Pakistan.
Aggressive buying by local mutual funds set an optimistic and positive tone early in the session. This growing optimism ahead of the upcoming SBP monetary policy meeting played a role in intensifying risk appetite across sectors.
Benchmark index surges as investor confidence strengthens
As per market participants, broad-based participation called to action the rally, pushing the benchmark index sharply higher during intraday trade.
KSE-100 index of the Pakistan Stock Exchange (PSX) surged on Tuesday, gaining over 2,600 points to reach a new all-time high.
During the session, the index rose 1.68% (3,073 points) to touch a record level of 185,481. It later closed at 185,062, up 1.45% (2,653 points) — still marking its highest-ever closing level.
The strong close near the day’s peak reflected firm investor confidence. Furthermore, it has reflected a positive start to the year for Pakistani equities.
Market analysts claimed expectations of easing monetary policy played a central role, as lower interest rates typically improve corporate earnings outlooks and encourage equity investments.
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Banking and fertilizer stocks lead the PSX rally
Heavyweight stocks made the biggest contribution to the index’s upward move. UBL, HBL, ENGROH, MCB, EFERT, and FFC together added more than 1,800 points to the benchmark.
Banking stocks benefited from expectations of improved credit growth, while fertilizer and energy-related shares gained on optimism surrounding lower borrowing costs and economic activity.
Trading volumes remain strong across key stocks
Market activity stayed robust throughout the session. Total traded volume reached 1.3 billion shares, while traded value stood at Rs 77.9 billion, highlighting sustained investor participation.
Bank of Punjab (BOP) emerged as the volume leader, with over 95 million shares changing hands. Other heavily traded stocks included PIBTL, KEL, TELE, HASCOL, and WTL, reflecting strong retail and institutional interest.
Outlook remains positive ahead of SBP policy decision
Analysts believe the PSX record high reflects growing confidence that the SBP may cut the key interest rate in its upcoming policy review. If confirmed, such a move could further support equities, particularly banking, construction, and energy stocks.
With strong liquidity, improving sentiment, and expectations of monetary easing, investors see the PSX entering the year on a firm footing, setting the stage for continued market momentum in the near term.