KARACHI: The Pakistan Stock Exchange (PSX) surged to a new record on Tuesday, with the benchmark KSE-100 index crossing the 188,000-point mark for the first time, as investors bet on a potential interest rate cut at the upcoming monetary policy meeting.
Read More: PSX gains 860 points to stay above at 188,000 level
The index closed at 188,621.78 points, up 860.09 points or 0.46 percent, after touching an intraday high of 188,958.38 and a low of 187,192.02. Analysts said broad-based buying by local mutual funds drove the rally, despite a widening current account deficit and a decline in foreign investment.
Engro Holdings, Pakistan Petroleum, Sazgar Engineering Works, Oil and Gas Development Company, and PSO contributed 661 points to the index, while losses in Meezan Bank, Hub Power, and United Bank partially offset gains, trimming 249 points. Overall market activity remained strong, with trading volume rising 2.26 percent to 1.22 billion shares and traded value climbing 1.5 percent to Rs63.8 billion. Hascol Petroleum led the volume chart with 113 million shares.
Pakistan recorded a current account deficit of $244 million in December 2025, reversing surpluses of $454 million in December 2024 and $98 million in November 2025. Net foreign direct investment outflows reached $135 million in December, adding caution to market sentiment.
Ali Najib, deputy head of trading at Arif Habib Ltd, said bulls dominated despite intermittent profit-taking, helping the index close on a positive note. Investors remained optimistic, anticipating monetary easing and improving corporate earnings, while selective dips presented buying opportunities.
Read More: PSX gains 2,662 points to close at 187,761
On the IPO front, the Signature Residency Developmental REIT Scheme, covering residential and commercial assets, was oversubscribed, reflecting strong investor appetite. Analysts expect the bullish momentum to continue in the near term, though some volatility is likely.