The Pakistan Stock Exchange (PSX) hit a historic milestone on Tuesday, with the KSE-100 index crossing the 166,000-point mark for the first time. The index rose to an intraday high of 166,556.29, gaining 2,708 points (1.65%). Even its lowest level of the day, 164,208.33, was up by 360 points (0.22%) from the previous close.
This is the third straight day of record gains at the PSX. The rally has been fueled by strong corporate earnings, increased market liquidity, and renewed investor confidence. Experts say local mutual fund activity and institutional inflows are driving the upward trend. Retail investors have also returned to the market in large numbers.
Read more: PSX continues with bullish trend, gains 1,590 points
Market analysts credit the rise to recent positive economic developments. These include a Rs1.275 trillion financing deal with commercial banks to ease circular debt, and a defence agreement with Saudi Arabia that signals stronger ties and potential foreign investment. Improved relations with the United States and Gulf countries have further lifted sentiment.
Samiullah Tariq of Pak Kuwait Investment said, “Investors are shifting toward equities due to strong corporate results and higher market liquidity.” Yousuf Farooq of Chase Securities added, “The market is in its optimism phase, with attention now on the IMF review, which is expected to conclude smoothly.”
Read more: PSX hits new record as KSE-100 crosses 163,000
Still, some concerns remain. Analysts warn that meeting IMF performance targets could be difficult. The outcome of ongoing IMF negotiations may influence investor sentiment in the coming weeks. For now, however, the market’s momentum suggests growing belief in Pakistan’s economic recovery.