PSX Soars to Record Highs Amid IMF Talks, Foreign Optimism

ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a historic rally this week, surging to all-time highs on the back of improved investor confidence fueled by strengthening diplomatic ties with the United States and Saudi Arabia, as well as positive progress in negotiations with the International Monetary Fund (IMF).

The benchmark KSE-100 Index soared by 6,733 points—registering a weekly gain of 4.1%—to close at a record 168,990 points. At its peak, the index touched 169,988, bringing it within reach of the symbolic 170,000-point milestone for the first time in the country’s history.

Investor enthusiasm translated into exceptional trading activity, with a record-breaking Rs79 billion worth of shares traded in a single day. Over the week, 7.42 billion shares changed hands, with an average daily volume of 1.8 billion shares and a total trading value of Rs364 billion. The market capitalization swelled by Rs618 billion, reaching Rs19,660 billion, signaling renewed trust from both institutional and retail investors.

Read more: PSX hits record as KSE-100 crosses 168,000 points

Market analysts attribute the rally to a combination of economic and geopolitical factors. Ongoing IMF discussions suggest forthcoming economic relief, while deeper engagement with the U.S. and Saudi Arabia has boosted investor optimism over potential foreign investment. A stable currency and renewed strength in key sectors like banking, energy, and construction have further supported the bullish sentiment.

As the market approaches the 170,000-point milestone, investors remain cautiously optimistic. Analysts believe sustained foreign support and prudent fiscal policies could keep the rally alive, though policy uncertainty could trigger short-term volatility.