The Pakistan Stock Exchange (PSX) soared to a historic high on Monday as bullish sentiment drove the KSE-100 index past the 148,000 level. The rally was driven by Fitch’s positive outlook on Pakistani banks, Moody’s recent upgrade of Pakistan’s sovereign rating to Caa1, and renewed optimism over economic reforms and foreign investment.
The benchmark index gained 1,704 points, or 1.16%, to close at 148,196, after surging by more than 1,900 points during intra-day trading. Analysts said investors were encouraged by stronger corporate earnings, the stability of the rupee, and reports of potential Pakistan-US trade and investment deals.
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Ahsan Mehanti of Arif Habib Corp said the market reacted strongly to Fitch’s outlook on banks, which boosted confidence in the financial sector, while Moody’s rating upgrade added to the positive momentum. “Speculation over new trade deals with the US and expectations of tariff incentives further fueled investor interest,” he noted.
According to Topline Securities, heavyweights including Lucky Cement, Meezan Bank, Bank AL Habib, and Pakistan Petroleum contributed more than 750 points to the index’s gain. Market sentiment was also lifted by the government’s circular debt reform drive, which includes measures such as reducing LNG cargoes, revising RLNG pricing, and mobilising funds through state-owned enterprises’ dividends and receivables. Detailed proposals are expected next week, keeping optimism high.
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Trading activity also strengthened, with volumes rising to 610.3 million shares compared with 473.6 million on Friday. The total value of traded shares increased to Rs 39.2 billion from Rs 32.9 billion in the previous session. Out of 487 companies traded, 283 closed higher, 175 declined, and 29 remained unchanged. WorldCall Telecom remained the volume leader, with over 40 million shares traded.
Analysts believe the rally reflects growing investor confidence in Pakistan’s economic outlook, particularly in the banking, cement, and energy sectors. If the momentum continues, they say the PSX could maintain its upward trajectory in the weeks ahead.
