The Pakistan Stock Exchange (PSX) witnessed another bullish session on Tuesday, with the benchmark KSE-100 index climbing more than 1,000 points, driven by sustained investor confidence following easing tensions between Pakistan and India.
The index opened with a sharp jump of 2,769 points, reaching 120,067.12 points from the previous close of 117,297.73 by 9:30am. By the afternoon, it was trading at 118,605.98 points — a 1.12% gain — and ultimately closed the day at 118,575.88, up by 1.09% or 1,278.15 points.
This upward trend follows Monday’s record 9% gain, as markets responded positively to a ceasefire agreement between the neighboring countries — a move reportedly brokered by U.S. President Donald Trump. The truce came after four days of military escalation and was supported by diplomatic efforts led by Washington.
Awais Ashraf, Director of Research at AKD Securities, stated that investor confidence initially rose due to the ceasefire but received an added boost from Trump’s remarks about enhancing trade ties with both nations. He also pointed out that energy sector stocks are seeing gains amid expectations of a Rs1.5 trillion settlement of circular debt.
Yousuf M Farooq from Chase Securities noted that the market is factoring in improving macroeconomic indicators, falling interest rates, and a possible reduction in the super tax, all of which could significantly enhance corporate earnings.
Samiullah Tariq of Pak Kuwait Investment Company echoed similar views, highlighting that the rally is being fueled by a combination of geopolitical stability, policy rate cuts, the anticipated release of an IMF tranche, strong corporate earnings, and expectations of a business-friendly federal budget.
