PSX starts FY26 on a positive note, KSE-100 settles at new record high
Positive momentum was observed throughout the trading session, pushing the KSE-100 Index to an intra-day high of
At close, the benchmark index settled at 128,199.42, an increase of 2,572.11 points or 2.05%.
Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies and power generation. Index-heavy stocks, including HUBCO, MARI, PRL, POL, MCB, MEBL and NBP traded in the green.
'The rally comes on the back of budget clarity and declining interest rates, prompting increased equity exposure from domestic investors,' Mohammed Sohail, CEO Topline Securities, said in a note.
Meanwhile, Waqas Ghani, Head of Research at JS Global, attributed the rally to an improved geopolitical outlook and a strengthening macroeconomic environment.
PM Shehbaz lauds record run
Prime Minister Shehbaz Sharif, in a statement, termed the stock market performance 'a manifestation of the fact that the confidence of the business community and investors in the country's economy and government policies is getting stronger and stronger with each passing day'.
He added that due to the government's policies in the last fiscal year, the country's economy gradually showed a good recovery.
'The new fiscal year will prove to be a milestone in the journey towards improving the country's economy,' he said.
On Monday, the PSX concluded the last day of fiscal year 2024-25 on a powerful note, fueled by strong fiscal year-end flows, active institutional participation and a significant external financing development that improved investor sentiment.
By the close of the session, the benchmark KSE-100 Index had surged by 1,248.25 points, or one percent, settling at a record 125,627.31 points, soaring to an all-time closing.
Globally, Asian shares crept higher and the dollar languished near multi-year lows on Tuesday as markets awaited a vote over US President Donald Trump's landmark tax and spending legislation.
Global shares reached an intraday record on Monday on trade optimism, but a marathon debate in the Senate over a bill estimated to add $3.3 trillion to the United States' debt pile weighed on sentiment.
Japan's Nikkei gauge of shares sank as much as 1.1% as the yen climbed. Oil fell for a second consecutive session, and gold advanced.
A vote on Trump's sweeping tax-cut and spending bill had been expected during the Asian trading day on Tuesday, but debate raged on over a long series of amendments by Republicans and the minority Democrats.
Trump wants the bill passed before the July 4 Independence Day holiday. As global trade negotiators scramble to get deals done before Trump's tariff deadlines, investors are also anticipating key U.S. labour market data on Thursday.
Payrolls data later in the week 'does have a significant bearing, I think, on sentiment towards the potential timing of Fed rate cuts,' he added in a podcast.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%, led by South Korea's Kospi gauge, which rose 1.8%.
This is an intra-day update
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