The Pakistan Stock Exchange (PSX) remained unstoppable on Tuesday as the KSE-100 index crossed the 149,000 points mark in intra-day trading, setting a new milestone in its record-breaking rally.

The KSE-100 index rose by 1,006.96 points to reach 149,203.38 during intra-day trading compared to the previous day's close of 148,196.42. During the session, the index hit a high of 149,367.31 points and a low of 148,293.94 points so far. Trading volume stood at 105.68 million shares, while the value of transactions reached Rs10.77 billion, marking a 0.68% increase, reflecting continued investor confidence.

Key Indicators

This signals a growing market sentiment, driven by positive expectations for government reforms in the circular debt sector, contributing to long-term market stability.
The index's surge of over 1,700 points on Monday and over 1,000 points on Tuesday, coupled with trading volumes exceeding 105 million shares and transaction values over Rs10.7 billion, indicates robust market activity.

Regional Perspective

The KSE-100 index crossing the 149,000 points mark is a significant milestone for the Pakistani market. It reflects an improved economic sentiment and early success in government reforms, particularly in the circular debt sector, aimed at enhancing the stability of the energy sector.

Analysis

The strong rally in Pakistan's stock market is attributed to several factors, including optimism surrounding government reforms in circular debt management, which aim to reduce reliance on Liquefied Natural Gas (LNG) cargoes, revise RLNG pricing, and mobilize funds from savings through LNG diversion, state-owned enterprises' dividends, and power sector receivables. Furthermore, strong corporate earnings, improved macroeconomic indicators, and expectations of favorable inflation data have contributed to bolstering investor sentiment. According to Topline Securities, bulls staged a strong comeback in Monday's trading session, with the KSE-100 index surging 1,904 points intra-day before closing at 148,196, up 1,705 points. Fitch expects lower interest rates, better credit growth, and reduced reliance on public-sector lending to benefit banks.