The Pakistan Stock Exchange (PSX) achieved a historic milestone on Thursday, with the benchmark KSE-100 index surpassing the 140,000-point mark for the first time in its history.
The index closed at an impressive 140,077 points, marking a significant achievement for the market.
The rally came despite the State Bank of Pakistan (SBP) opting to maintain interest rates in its latest monetary policy announcement. The KSE-100 index surged by 1,650 points during intra-day trading, quickly regaining two key psychological levels—139,000 and 140,000.
The market sentiment was largely influenced by news of a trade agreement between Pakistan and the United States, which analysts believe could open the door for fresh foreign investments and the exploration of new reserves.
The oil and gas sector led the charge, with significant gains seen in major players, as investors anticipate renewed global interest.
The textile sector also saw positive movement, while banking stocks followed suit, reflecting increased investor confidence in the market.
Initially, there was some disappointment over the central bank’s decision not to lower interest rates. However, the broader market’s reaction remained largely positive, fueled by optimism that the trade agreement could alleviate macroeconomic pressures and attract much-needed foreign capital.
However, sectors such as cement, steel, and fertiliser are expected to face ongoing challenges, as they had hoped for a rate cut. Market observers have pointed out that these industries may remain under pressure in the absence of such a move.
Analysts believe the rally is a sign of growing optimism over improved economic relations with the United States and potential advancements in energy exploration and exports.
If macroeconomic indicators remain stable and further details of the trade agreement emerge, the PSX could see continued positive momentum in the coming sessions.
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