PSX soars to all time high amid bullish market sentiment

The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Friday, with the benchmark KSE-100 Index surging to an all-time intraday high of 140,585.38 points, driven by bullish investor sentiment ahead of expectations of monetary easing.

The index gained 1,919.89 points, or 1.38%, during intraday trade. 

“Stocks are trading at new highs ahead of major earnings announcements due next week and likely SBP policy easing amid thin inflation,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. 

“Expectations over strong financial results and annual payouts played a catalytic role in today’s bullish activity,” he added.

Sana Tawfiq, Head of Research at Arif Habib Limited, echoed the sentiment, stating that the rally is likely to persist through earnings season, albeit with intermittent bouts of profit-taking as investors lock in gains.

Read: KSE-100 index crosses 137,000 points on investor optimism and economic upturn

The rally gained further momentum after Finance Minister Muhammad Aurangzeb’s recent comments suggesting there is scope for a reduction in interest rates, although the final decision rests with the State Bank of Pakistan (SBP). 

The central bank had held its benchmark rate at 11% in its last policy meeting, citing inflationary and geopolitical risks, particularly following tensions between Iran and Israel.

While the SBP’s next Monetary Policy Committee (MPC) meeting date is yet to be announced, it is expected to take place by the end of July, and market participants are anticipating a possible rate cut in light of improving macroeconomic indicators.

With positive momentum building across multiple fronts, such as corporate earnings, monetary policy, and fiscal management, analysts believe the PSX is well-positioned to sustain its upward trajectory, although profit-taking and policy uncertainty may lead to short-term volatility.