Buying momentum continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing with a gain of nearly 800 points on Tuesday, as investor sentiment remained upbeat amid supportive market cues.
Positive sentiments prevailed throughout the trading session, pushing the KSE-100 Index to an intra-day high of 156,467.91.
At close, the benchmark index settled at 156,180.94, an increase of 796.44 points or 0.51%.
“The rally was underpinned by positive sentiment stemming from the State Bank’s latest remarks on the flood situation, noting that while the crisis is evolving, the intensity remains significantly lower than previous episodes, with the economy demonstrating stronger resilience,” brokerage house Topline Securities said in its post-market report.
“Adding fuel to the bullish momentum, the MTS [margin trading system] rate normalised to 14.95%, providing much-needed comfort to leveraged players and enhancing market liquidity.”
Meanwhile, the energy sector garnered investor’s interest, as speculation swirled around the upcoming circular debt signing ceremony on September 17, 2025. On the back of this chatter, OGDC, PPL, and PSO surged sharply, drawing aggressive buying interest, Topline said.
On Monday, the PSX opened the week on a bullish note as the index gained 944.82 points, or 0.61%, to close at 155,384.51.
As widely anticipated, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) decided on Monday to keep the policy rate unchanged at 11%, citing the adverse impact of recent floods on the near-term macroeconomic outlook.
Internationally, Asian stocks climbed on Tuesday while the dollar was on the back foot as investors bet the US Federal Reserve would resume its easing cycle this week and potentially leave the door open to further rate cuts.
Markets hardly reacted to news that the US Senate narrowly confirmed Stephen Miran to the Fed’s Board of Governors while a US appeals court separately declined to allow President Donald Trump to fire Fed Governor Lisa Cook.
Both moves were seen as unlikely to shift the needle for the Fed’s decision on Wednesday, where a 25-basis-point cut is fully priced in.
Expectations of imminent Fed rate cuts have kept the market mood buoyant over the past few sessions and sent stocks scaling new highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose to a more than four-year top early on Tuesday and last traded 0.3% higher, while Japan’s Nikkei and Topix indexes notched fresh records.
Just as important for markets will be Fed members’ “dot plot” projections for rates and guidance from Fed Chair Jerome Powell on the extent and pace of any further easing.
Futures already have 127 bps worth of cuts priced in by July 2026, so anything less than dovish will disappoint investors.
On Tuesday, the Pakistani rupee maintained its positive momentum against the US dollar, appreciating marginally in the inter-bank market to settle at 281.51.
Volume on the all-share index increased to 1,356 million from 857.61 million recorded in the previous close. The value of shares rose to Rs43.28 billion from Rs32.72 billion in the previous session.
WorldCall Telecom was the volume leader with 125.67 million shares, followed by B.O.PunjabXD with 112.34 million shares, and Pak Int.Bulk with 77.88 million shares.
Shares of 483 companies were traded on Tuesday, of which 280 registered an increase, 178 recorded a fall, while 25 remained unchanged.
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