PSX surges to new all-time high after 876-point rally

• Analyst attributes development to improved macro front.
• Total traded volumes reach 904 million shares at closing.
• Overall market turnover climb to Rs47bn during session.
  

The Pakistan Stock Exchange (PSX) closed at a new all-time high on Monday as the bulls pushed the bourse to over 170,500 points.

The KSE-100 Index concluded the trading session on a strong note, closing at 170,741 points, registering a gain of 876 points.

The benchmark remained positive during the day, hitting an intraday high of 171,001 points and a low of 170,292 points, reflecting sustained investor confidence and an improving market outlook.

Key index heavyweights — PPL, SYS, MLCF, NBP, and UBL — led the rally, collectively contributing approximately 651 points to the index’s overall advance.

Market activity remained vibrant, with total traded volumes reaching 904 million shares, while overall market turnover climbed to Rs47 billion. PIBTL stood out as the most actively traded stock of the session, with 123 million shares.

Explaining the reasons behind today's surge, Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, said: "Better expectations from the macro front, monetary easing, and better expectations from corporate results are driving the market."

Sana Tawfik, head of research at Arif Habib Limited, attributed the rally to the strong buying in energy and banking stocks.

She said that the market was likely to sustain the positive momentum after the State Bank of Pakistan (SBP) cut the policy rate by 50 basis points, which came as a surprise to market participants.

The developments helped the benchmark extend its rally, and "potentially unlock new highs in the coming sessions", Sana added.

The SBP, in a surprise move earlier today, slashed the key policy rate by 50 basis points to 10.5% despite food-led inflation pressures and external considerations.

The market has also been largely positive since the International Monetary Fund's (IMF) Executive Board approved a $1.2 billion loan for Pakistan after completing the second review of the country's economic reform program under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).