On May 19, 2025, the Pakistan Stock Exchange (PSX) experienced a surge in momentum, crossing the 120,000-point barrier during intraday trading. The KSE-100 index reached a record high of 120,285.54 points, climbing 636.4 points (0.53%) from the previous close of 119,649.14 points at 9:33 am. However, the index saw fluctuations, dropping to 119,426.44 points by 11:44 am, 222.7 points lower than the earlier figure.
The market’s upward trend came after a significant rebound last week, driven by the Pakistan-India ceasefire easing investor concerns. Additionally, the approval of Pakistan’s loan review by the International Monetary Fund (IMF) and the disbursement of a $1 billion tranche further fueled the positive sentiment.
Analysts, including Yousuf M. Farooq from Chase Securities, noted that the market is in a consolidation phase as investors assess the IMF review report ahead of the federal budget, which is expected on June 2. Retail investors were advised to focus on long-term goals and invest consistently despite short-term market fluctuations.
Awais Ashraf from AKD Securities highlighted that while the IMF’s recognition of Pakistan’s fiscal achievements is positive, concerns remain regarding the IMF’s push for higher revenue targets in the upcoming fiscal year. Despite this, the strong external position, current account surplus, and easing inflation are expected to support continued economic activity and bolster equities over fixed-income instruments.
Looking ahead, analysts predict that the KSE-100 index could hit 165,215 points by December 2025, buoyed by strong corporate earnings, stable banking sector returns, and improved cash flow in the oil and exploration sectors. Additionally, lower interest rates and macroeconomic stability are expected to provide further support.