PTBP Web Desk
The bullish trend at the Pakistan Stock Exchange (PSX) continued on Tuesday, reflecting a wave of investor optimism and strong macroeconomic indicators. The benchmark KSE-100 Index surged by more than 1,200 points during intra-day trading, showcasing renewed confidence in Pakistan’s economic stability and capital markets.
At 3:30 PM, the benchmark index was recorded at 167,484.31 points, gaining 1,241.41 points, or 0.75%, compared to the previous session. This steady upward movement marked another session of positive momentum for the stock market, building on Monday’s significant rally.
Strong buying interest was seen in several key sectors, including automobile assemblers, commercial banks, fertilisers, oil and gas exploration, OMCs (Oil Marketing Companies), power generation, and refineries. The rise in demand for blue-chip and index-heavy stocks indicated a renewed appetite for risk among investors, following improved macroeconomic stability and declining political noise.
Among the key gainers were Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), MCB Bank, and National Bank of Pakistan (NBP) — all trading in the green during the session.
Market analysts observed that the bullish momentum was underpinned by a combination of stronger fundamentals, reduced geopolitical tensions, and positive financial data from the State Bank of Pakistan (SBP).
According to analysts, Pakistan’s current account surplus for September has been a key driver of investor optimism. The SBP reported a $110 million surplus for the month, in sharp contrast to the $52 million deficit recorded in the same period last fiscal year.
This surplus primarily stemmed from a notable increase in remittance inflows, which reached $3.18 billion, reflecting an 11% year-on-year rise. The data suggested that the country’s external position is improving, supported by consistent inflows from overseas Pakistanis and lower import bills.
Such developments have restored confidence in the economy, prompting both institutional and retail investors to re-enter the market. The continuation of this positive trajectory in the foreign exchange reserves and trade balance further strengthens Pakistan’s short-term economic outlook.
The market’s upbeat tone was also attributed to recent diplomatic progress between Pakistan and Afghanistan, which has reduced regional uncertainties. This diplomatic breakthrough was celebrated by investors as a sign of potential stability in cross-border trade and geopolitical relations.
The KSE-100 Index had already gained 2,436.69 points, or 1.49%, on Monday, closing at 166,242.90 points, marking one of the strongest starts to the trading week in recent months. The continuation of this positive momentum on Tuesday demonstrated that investor confidence has extended beyond short-term reactions to sustained optimism in Pakistan’s broader economic prospects.
Global markets also played a role in shaping the local trading sentiment. Across Asia, stocks rose as easing trade tensions between the United States and China lifted risk appetite. US President Donald Trump expressed optimism about reaching a “fair trade deal” with Chinese President Xi Jinping, signaling reduced chances of escalation over issues like Taiwan.
The easing of trade tensions prompted regional indices to rise. The MSCI Asia-Pacific index (excluding Japan) reached its highest level in more than four and a half years, gaining 0.94%. Meanwhile, China’s Shanghai Composite rose 0.2%, Hong Kong’s Hang Seng Index advanced 1%, and Australia’s ASX 200 climbed as investors bought into rare earths and critical minerals stocks following a new supply agreement with the United States.
In Japan, anticipation of Sanae Takaichi’s expected election as the country’s first female Prime Minister boosted investor morale, sending the Nikkei Index to a record high.
These global developments helped improve the overall sentiment in Asian markets, with Pakistan’s PSX benefiting from the ripple effect of improved regional optimism.
Market analysts remain optimistic about the PSX outlook for the coming weeks, citing improving fundamentals, strong foreign exchange reserves, and stable monetary policy as catalysts for sustained growth. However, they caution that the momentum must be supported by continued fiscal discipline, policy consistency, and structural reforms to ensure long-term investor confidence.
They also emphasized that global oil prices and geopolitical developments will continue to influence the local market trajectory. As of Tuesday, oil prices in the international market were mixed due to concerns over US-China trade relations and supply dynamics.
