PSX Reaches New All-Time High Amid Market Optimism

Pakistan Stock Exchange Reaches New Record High on Strong Earnings and Anticipation of Interest Rate Cut

On Tuesday, the Pakistan Stock Exchange (PSX) hit a historic peak as the KSE-100 index surged by over 650 points. Investor optimism was fueled by robust corporate earnings and speculation surrounding a potential interest rate cut by the State Bank of Pakistan (SBP), expected next week.

Trading began with a dip, with the KSE-100 index falling to an intra-day low of 90,449.41 points. However, market sentiment quickly shifted, and the index gained upward momentum.

The market rally was driven by foreign investment in banking and fertilizer sectors, along with institutional buying amid favorable lending conditions. The KSE-100 briefly surpassed the 91,000 mark, reaching an intra-day high of 91,358.15 points before closing below 91,000, still marking impressive gains.

Ahsan Mehanti, Managing Director of Arif Habib Corp, commented, “The stock market reached new heights as investors responded to strong financial results and anticipated an upcoming SBP policy rate reduction.” He highlighted foreign interest in blue-chip banking and fertilizer stocks, along with substantial institutional buying, as significant factors behind the bullish trend.

At the close, the KSE-100 index was up by 668.57 points, or 0.74%, settling at 90,864.09 points.

Topline Securities noted that the PSX maintained its upward trend, with the KSE-100 peaking at 91,358 points during intra-day trading. The rally was attributed to better-than-expected corporate earnings and strong investor confidence, bolstered by institutional interest.

Fauji Fertiliser, Systems Limited, Cherat Cement, Hub Power, and GlaxoSmithKline Pakistan were among the main contributors, collectively adding 515 points to the index.

According to Arif Habib Limited, the PSX crossed the 91,000 threshold during the day and finished with a gain of 0.74%. Of the 440 companies traded, 171 saw their share prices rise, 219 declined, and 50 remained unchanged. Key gainers included Fauji Fertiliser (+3.15%), Systems Limited (+4.89%), and Cherat Cement (+9.25%), while Engro Fertilisers (-2.31%), Meezan Bank (-2.3%), and Mari Petroleum (-1.66%) saw declines.

In addition, Pakistan Petroleum reported first-quarter FY25 earnings per share of Rs8.67, reflecting a 20% drop year-on-year but a 32% increase from the previous quarter.

JS Global analyst Mohammed Waqar Iqbal remarked on the day’s strong performance, noting that the PSX broke the 91,000 resistance level with solid trading volumes. He advised a “buy-on-dips” approach, particularly in the cement, exploration and production, and technology sectors.

Overall, trading volumes rose to 602.8 million shares, up from 567.3 million the previous day, with a total trading value of Rs28.2 billion. WorldCall Telecom led in trading volume with 41.4 million shares, closing at Rs1.27, followed by Silkbank and Pace (Pak) Ltd. Meanwhile, foreign investors sold shares valued at Rs1.4 billion, as per the National Clearing Company of Pakistan Limited (NCCPL).

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