ISLAMABAD: The Pakistan Stock Exchange (PSX) on Monday extended its bullish momentum and surpassed the historic 142,000-point mark, with analysts attributing the rally to hopes of strong corporate earnings ahead and a stable rupee.
The benchmark KSE-100 index rose by 1,017.66 points, or 0.72 percent, to close at an all-time high of 142,052.64 points, up from the previous close of 141,034.98 points.
Ahsan Mehanti, the CEO of Karachi-based Arif Habib Commodities, said stocks reached the new all-time high amid speculations ahead of major earning announcements due this week.
“Strong financial results, favorable US tariff deal, rupee stability, government’s resolve to end power sector circular debt crises and thin inflation data for Jul’25 played catalyst role in bullish close at PSX,” he said.
Pakistan’s currency, which last month fell to a 22-month low of Rs284.97 against the US dollar, has lately recovered thanks to an intervention by Pakistani intelligence and investigation agencies, who have been cracking down on dollar smugglers and hoarders. The greenback closed at Rs282.66 as the Pakistani rupee gained 0.02 percent on Monday, according to central bank data.
Pakistan and the US also finalized a trade deal this week, which reduced tariff on Pakistani imports to 19 percent from an earlier announced 29 percent. As part of the agreement, Washington will support the development of Pakistan’s oil reserves.
The announcement drove investor optimism and played a key role in fueling the bullish sentiment at the PSX last week.
The Topline Securities brokerage firm said the rally was driven by investor optimism as the Oil & Gas Development Company Limited received a Rs7.7 billion ($27.2 million) TFC payment and cement sector outlook improved on better monthly performance.
“Investor participation remained robust, with a total traded volume reaching 663 million shares and a turnover of Rs42 billion,” it said in its daily market review. “CNERGY topped the volume chart with 53 million shares exchanged.”
