PSX Extends Rally as Rate Cut and Fuel Relief Boost Investor Confidence

ISLAMABAD: The Pakistan Stock Exchange (PSX) continued its strong upward trend on Tuesday, supported by a cut in the policy interest rate and relief in petroleum prices, which boosted investor confidence.

During early trading, the benchmark KSE 100 Index gained 1,071.74 points to reach 171,813.08 points, showing an increase of 0.62 percent. Out of 560 active companies, share prices of 274 companies moved up, 133 declined, while 153 remained unchanged.

The positive momentum followed the State Bank of Pakistan’s decision a day earlier to cut the policy interest rate by 50 basis points. According to the central bank’s monetary policy statement, the new policy rate has been set at 10.50 percent. Most economic analysts had expected the rate to remain unchanged at 11 percent, making the decision by the Monetary Policy Committee an unexpected move.

It is worth noting that in May 2025, the State Bank had already reduced the policy rate by 100 basis points, after which it remained steady at 11 percent for several policy cycles.

Adding to market optimism, the government announced revised petroleum prices, providing relief to consumers by reducing the price of high speed diesel, while keeping petrol prices unchanged.

Read more: PSX Hits Record High as Rupee Strengthens Against Dollar

Earlier on Monday, the PSX also recorded strong gains, with the KSE 100 Index rising by 876.82 points, or 0.52 percent, to close at 170,741.35 points. During the session, trading volume in the ready market stood at 905.685 million shares with a total value of Rs47.718 billion, compared to 873.031 million shares worth Rs40.870 billion in the previous session.

Market capitalization increased to Rs19.405 trillion from Rs19.321 trillion a day earlier. Out of 486 active companies in the ready market, 239 advanced, 202 declined, while 45 remained unchanged.

Pak International Bulk Terminal led the volume chart with 123.267 million shares, followed by Hum Network with 39.670 million shares and Fast Cables Limited with 36.328 million shares.

Among the top gainers, Unilever Pakistan Foods Limited rose by Rs136.83 to close at Rs29,000, while Hoechst Pakistan Limited gained Rs97.38 to settle at Rs4,808.99. On the losing side, PIA Holding Company Limited B fell by Rs100 to close at Rs24,096, and Khyber Textile Mills Limited declined by Rs77.15 to Rs1,895.36.