The Pakistan Stock Exchange (PSX) continued its historic bull run as the KSE-100 Index crossed the 120,000 mark during intra-day trading on Tuesday, marking a major milestone in investor confidence.
Fueled by a combination of diplomatic breakthroughs and economic relief measures, the index jumped 2,769.39 points (2.36%), peaking at 120,067.12 before settling after Monday’s record rally.
This surge follows a week of regional uncertainty and reflects renewed optimism after:
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A surprise ceasefire agreement between Pakistan and India.
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The International Monetary Fund’s (IMF) approval of a $2.4 billion financial package, including $1 billion under the Extended Fund Facility (EFF) and $1.4 billion via the Resilience and Sustainability Facility (RSF).
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US President Trump’s mediation offer on Kashmir and encouragement for increased bilateral trade.
On Monday, the market staged its biggest single-day rally ever, as the KSE-30 index surged over 5% within minutes of opening. The investor sentiment remained undeterred even after automatic cooling measures were triggered due to the steep rise.
Strong Trading Volumes
According to PSX data:
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140.7 million shares were traded.
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Total trade value reached Rs17.07 billion.
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The KSE-100 rebounded from a previous close of 117,297.73.
Why the Surge Matters
This is the first time since April 4 that the KSE-100 has climbed above the 120,000 point threshold, signaling a strong return of foreign and domestic investor confidence in Pakistan’s equity market.
Analysts credit the rally to the improved macroeconomic outlook, driven by a relatively stable rupee, declining inflation projections, and expectations of an easing monetary policy stance in the upcoming budget.
According to Topline Securities, the combination of diplomacy easing tensions and dollar inflows from the IMF have created the perfect environment for market optimism, with the PSX not just bouncing back—but roaring into a renewed bullish phase.
