KARACHI:
The Pakistan Stock Exchange (PSX) extended its bullish momentum on Tuesday, maintaining firm gains throughout the trading session as investors demonstrated renewed confidence driven by broad-based buying across key sectors. Market participants appeared to have moved beyond concerns surrounding the State Bank of Pakistan’s (SBP) recent interest rate adjustment, buoyed instead by easing global oil prices and improving prospects for de-escalation in Middle East tensions.
The benchmark KSE-100 index sustained its upward movement from the outset, with strong demand emerging in pivotal sectors including cement, commercial banking, oil & gas exploration, and oil marketing. The sustained rally highlighted investors’ appetite for equities despite a tightening monetary environment.
Closing higher by 1,428.73 points, or 0.88%, the index concluded at 164,467.20. Throughout the day, it oscillated within a range between an intra-day peak of 164,787.67 and a trough of 163,545.70, yet remained in positive territory continuously.
Global crude benchmarks declined during the session amid signs of potential easing hostilities in the Middle East. However, continued disruptions in major producing regions such as Saudi Arabia and threats to international shipping maintained pressure, keeping energy prices elevated near six-month levels. These mixed signals did little to derail local market momentum, which surged forward amid supportive domestic factors.
“Today’s performance was largely positive, fueled by active buying in commercial banks, cement, fertilizers, and automotive stocks,” noted Ahmed Sheraz, equity trader at KASB KTrade. Prominent contributions came from heavyweights including MCB Bank, Fauji Fertiliser, UBL, Pakistan Petroleum, and National Bank of Pakistan.
“With the corporate earnings season underway, stock-specific developments are shaping investment flows, encouraging selective participation even amid wider macroeconomic challenges,” he added. “Still, investor sentiment remains guarded given ongoing geopolitical uncertainties involving Israel, Iran, and the approaching U.S. midterm elections.”
Brent crude hovered near $115–$116 per barrel, raising concerns over imported inflation. Combined with rising domestic cost pressures and the SBP’s policy rate increase to 12%, these elements could temper future market enthusiasm. “Looking ahead, we expect the market to adopt a mixed-to-cautious tone,” said Sheraz. “Corporate results, commodity prices, geopolitical updates, and economic data will likely steer near-term direction. While individual stocks may attract attention, overall volatility is expected to persist.”
According to Ali Najib of Arif Habib Limited (AHL), the market commenced positively and retained gains through most of the day before closing close to its highest point. He attributed the uplift to investor relief following the SBP’s measured 50-basis-point rate hike—smaller than some had feared—a decision viewed favorably amidst evolving global dynamics.
Further reinforcing sentiment was progress in regional diplomacy, with Saudi Arabia, Turkey, and Pakistan engaging in high-level talks in Iran aimed at easing tensions. On the economic front, the central bank disclosed total foreign exchange interventions worth $17.2 billion from June 2024 to July 2026, including $863 million in July alone, underlining efforts to stabilize currency markets and bolster reserves.
Market activity also saw improved liquidity, with trading volumes rising to 402 million shares compared to 376 million recorded on the previous day. The total value of transactions reached Rs18 billion.
A total of 497 companies were traded during regular sessions. Of these, 282 shares closed in the green, 170 registered declines, and 45 ended unchanged.
