PSX hits new record, KSE-100 settles above 165,000 level

The record-breaking buying rally continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling at a new all-time high on Tuesday.

Positive momentum was observed throughout the trading session, pushing the KSE-100 to an intra-day high of 166,556.29.

At close, the benchmark index settled at 165,493.58, an increase of 1,645.90 points or 1%.

Pakistan and the International Monetary Fund (IMF) on Monday began talks for the second review of the $7 billion Extended Fund Facility (EFF) programme and the first review of the Resilience and Sustainability Facility (RSF), with discussions centering on fiscal performance and governance reforms.

Official sources said talks focused on Pakistan’s recent economic performance, revenue collection, spending discipline, and progress on structural reforms.

“The IMF team has arrived, and according to reports in the media, the Fund does not see any major economic impact from the floods,” Sana Tawif, Head of Research at Arif Habib Limited, told Business Recorder.

“This provides a breather, as it suggests there won’t be significant disruptions in the overall economic numbers.”

Talking about the upcoming inflation data, which is scheduled to be released on Wednesday, Tawfik said the inflation rate will remain in single digits—likely between 5.5% and 6%—despite some increase in food prices due to the floods. “Encouragingly, the impact is not as severe as initially feared,” she said

“Additionally, the rollover week has ended, so a fresh buying momentum is expected to continue from here.”

Meanwhile, Saad Hanif of Ismail Iqbal Securities attributed the buying rally to “immense liquidity” available in the market.

“At the forefront is an abundant domestic liquidity, with funds and institutions actively channelling funds into equities amid limited alternative investment avenues,” he said.

Moreover, the economic outlook remains positive amid expectations of further monetary easing.

“Meanwhile, corporate earnings have held up well, especially in key sectors such as banks, E&Ps, and fertilisers, offering attractive valuations and dividend yields.”

The analyst was of the view that the recent conflict with India has triggered a clear perception shift globally, with Pakistan now seen as a resilient and strategic player rather than just a high-risk market.

“This change has boosted investor confidence and strengthened the overall investment climate,” he said.

On Monday, the PSX began the new week on a bullish note as across-the-board buying lifted key indices to fresh record levels. The benchmark KSE-100 Index gained 1,590.68 points, or 0.98%, closing at 163,847.69.

Internationally, shares in Asia edged higher and gold continued its record climb on Tuesday as markets weighed prospects for a US government shutdown that would delay closely watched jobs figures.

US Vice President JD Vance said the government appeared “headed to a shutdown” after little progress in budget talks between President Donald Trump and Democratic opponents.

A government closure would halt the publishing of critical employment numbers later this week, putting the spotlight on the Labor Department’s JOLTS report on August job openings due later on Tuesday.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5% in early trading, poised for a 5.6% gain this month that would be the best in a year. Japan’s Nikkei stock index slid 0.3%, down for a third day.

Meanwhile, the Pakistani rupee posted further gain against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday. At close, the currency settled at 281.32, a gain of Re0.03 against the greenback.

Volume on the all-share index increased to 1,349 million from 1,285 million recorded in the previous close. The value of shares rose to Rs76.77 billion from Rs65.77 billion in the previous session.

WorldCall Telecom was the volume leader with 113.57 million shares, followed by Pak Elektron with 110.39 million shares, and B.O.Punjab with 94.03 million shares.

Shares of 488 companies were traded on Tuesday, of which 176 registered an increase, 288 recorded a fall, while 24 remained unchanged.