Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run

A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. (Reuters/File)
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Updated 29 September 2025
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Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run

  • The benchmark KSE-100 index rose by 0.98 percent to close at 163,847 points as compared to the weekend close of 162,257 points
  • Data shows mutual funds were hefty net buyers and carried last week’s momentum to Monday’s session, giving the market a solid lift

ISLAMABAD: The Pakistan Stock Exchange (PSX) continued its momentum and gained 1,590 to breach the 163,000-point mark for the first time ever, with market analysts saying aggressive institutional buying was behind the bullish trend.

The benchmark KSE-100 index rose by 0.98 percent to close at 163,847 points as compared to the weekend close of 162,257 points, according to the PSX website.

Maaz Mulla, vice president for equity sales at Karachi-based Topline Securities, said the rally was largely driven by aggressive buying from local mutual funds.

“NCCPL (National Clearing Company of Pakistan Limited) data shows that mutual funds were hefty net buyers on Friday and the momentum carried through to today’s session, giving the market a solid lift,” he said.

The market gained nearly 3,000 points to close the week at an all-time high on Friday as warming United States-Pakistan relations and hopes of an International Monetary Fund (IMF) loan tranche release boosted investor confidence.

Ties have improved between the US and Pakistan as Washington’s relationship with New Delhi has soured over India’s increased purchases of discounted Russian oil amid Ukraine war. President Donald Trump this year raised tariffs on India for those oil purchases, while the US and Pakistan reached a landmark trade deal in July to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for Islamabad.

Separately, an IMF mission is currently holding talks with Pakistani officials for the second review of Islamabad’s $7 billion External Fund Facility (EFF) and first review of the $1.4 billion Resilience and Sustainability Facility (RSF) programs.

But despite the positive, the Pakistani stock market slightly slowed down on Monday as compared to the previous session, with volumes recorded at 1,282 million shares and traded value climbing to Rs65.7 billion ($231 million).

“Institutional inflows and improved sentiment ensured the bulls stayed firmly in command, pushing the market higher into new territory,” he said.


China’s mediation eases fighting between Pakistan, Afghanistan — sources

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China’s mediation eases fighting between Pakistan, Afghanistan — sources

  • China’s envoy shuttles between Pakistan and Afghanistan to mediate in conflict
  • Gulf countries that mediated in the past embroiled in Middle East conflict

ISLAMABAD/BEIJING: Chinese mediation efforts, including a message from ​President Xi Jinping, have helped ease the worst fighting between Pakistan and Afghanistan since the Taliban returned to power in 2021, three Pakistani government officials said.

The officials said a meeting between the Chinese ambassador to Pakistan, Jiang Zaidong, and Prime Minister Shehbaz Sharif late last month included a message from Xi to cease hostilities.

Neither side has reported any Pakistani air strikes on Afghanistan in recent days and ground fighting along the 2,600-km (1,600-mile) border has tapered off, although daily clashes continue to be reported.

China has said it is ‌in contact ‌with both countries about ending hostilities but Mosharraf Zaidi, a ​spokesman ‌for ⁠Sharif who ​has previously ⁠said there would not be any talks with the Taliban, did not respond to questions about Beijing’s efforts.

Pakistani security officials have said the military campaign will continue until desired goals were achieved, which was to prevent militant attacks in Pakistan launched from Afghan soil.

Pakistan’s foreign ministry and military did not respond to Reuters requests for comment.

Islamabad launched air strikes on Afghanistan on February 26, saying the Taliban were providing a safe haven to ⁠militants carrying out attacks in Pakistan. Kabul denies the charge ‌and says militancy in Pakistan is an internal problem.

The ‌Chinese efforts came as Qatar, Saudi Arabia and ​Turkiye, who hosted talks between Pakistan and ‌Afghanistan during previous clashes in October, have been embroiled in the war in the Middle ‌East following the US and Israeli strikes on Iran.

“China’s Special Envoy for Afghanistan Affairs is currently shuttling between the two countries to mediate, while Chinese embassies in both nations maintain close communication with the respective parties,” the Chinese foreign ministry told Reuters in an email.

“The most urgent task ‌is to prevent the fighting from expanding and for the two countries to return to the negotiating table as soon as possible.”

The ⁠foreign ministry added ⁠that Foreign Minister Wang Yi held telephone talks with Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Tuesday to discuss the conflict.

China’s ambassador to Kabul, Zhao Xing, and the special envoy Yue Xiaoyong met Afghanistan’s acting Foreign Minister Amir Khan Muttaqi this week, the Afghan foreign ministry said in a statement.

Afghanistan and Pakistan have said they inflicted heavy damage on the other in the conflict and killed hundreds of opposition troops, without providing evidence. Reuters has not been able to verify the reports.

Beijing, a longtime Pakistani ally, has invested heavily in mines and minerals in both nations.

The investments include over $65 billion in road, rail and other development projects in Pakistan, part ​of Beijing’s Belt and Road Initiative to ​expand land and sea trade routes to Europe and Africa.