The Pakistan Stock Exchange (PSX) witnessed a strong bullish trend on Wednesday, driven by positive investor sentiment and a reaffirmation of support from Field Marshal Syed Asim Munir to the business community. The KSE-100 Index surged by nearly 700 points within the opening minutes of the trading session, reflecting growing optimism in the market amid easing political tensions and favorable economic signals.
At 9:35 AM, the benchmark KSE-100 Index was recorded at 140,082.55, marking an impressive gain of 662.94 points, equivalent to 0.48%. This momentum continued from Tuesday’s rally, showcasing robust investor confidence across major sectors of the economy.
Key industries leading the rally included:
- Automobile Assemblers
- Commercial Banks
- Oil & Gas Exploration Companies
- Oil Marketing Companies (OMCs)
- Power Generation and Distribution
- Refineries
Blue-chip stocks such as HUBCO, NRL, MARI, OGDC, PPL, POL, SNGPL, and SSGC were among the top performers trading in the green.
Investor sentiment received a major boost following a high-level meeting between COAS Field Marshal Syed Asim Munir and leading representatives from Pakistan’s business and industrial community. According to a statement issued by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the COAS expressed his unwavering support for economic growth and private sector empowerment.
During the meeting, Field Marshal Munir instructed the Federal Board of Revenue (FBR) to engage in a constructive dialogue with business leaders regarding contentious issues like arrest powers and penalties included in the Sales Tax Act 1990, specifically Sections 37A and 37B.
“The business community is immensely thankful to Field Marshal Asim Munir for immediately directing that the new provisions be held in abeyance and for instructing the FBR to enter meaningful, solution-oriented dialogue with stakeholders,” the FPCCI stated.
This move significantly contributed to calming tensions between the business sector and the tax authorities, paving the way for a more investment-friendly climate.
On Tuesday, the PSX closed on a high note as the KSE-100 Index climbed 1,202 points, or 0.87%, ending the session at 139,419.62 points. Market experts attributed this surge not only to the COAS’s reassurances but also to the ruling government’s majority win in the Senate, which helped ease political uncertainty.
With renewed optimism, institutional investors and market participants appear to be embracing risk, buoyed by hopes of improved governance, policy stability, and economic recovery.
The positive sentiment in Pakistan’s stock market was further underpinned by gains in Asian and global markets. Notably, Japanese stocks surged after former U.S. President Donald Trump announced a trade deal with Japan, fueling hopes of more trade agreements in the near future.
Japan’s Nikkei 225 Index soared by 2.6%, with automakers leading the charge:
- Mazda Motor surged 17%
- Toyota Motor rose 11%
These gains were supported by reduced tariffs, as Japan agreed to a 15% auto tariff on exports to the U.S., significantly lower than the initially proposed 25%.
Meanwhile, EUROSTOXX 50 futures climbed 0.8%, and Wall Street futures ticked up by 0.1%, reflecting global optimism about trade cooperation.
In China, the markets showed modest gains:
- Chinese blue-chip stocks edged up 0.3%
- Hong Kong’s Hang Seng Index gained 0.5%
- MSCI’s Asia-Pacific Index (excluding Japan) advanced by 0.6%
Further boosting investor confidence, U.S. and Chinese officials are set to meet in Stockholm next week to discuss extending the August 12 deadline for finalizing a broader trade agreement, according to U.S. Treasury Secretary Scott Bessent.
While recent developments are a cause for optimism, analysts advise caution. Pakistan’s macroeconomic fundamentals—including inflation, foreign reserves, and fiscal deficit—still require strategic attention. However, the military leadership’s backing for economic initiatives and stakeholder engagement may prove to be a pivotal factor in stabilizing investor sentiment in the medium term.
The business community is also urging authorities to follow through with reforms, simplify tax regulations, and ensure policy continuity to maintain the current momentum in the capital markets.
