PSX extends historic rally as KSE-100 index climbs more than 1,200 points in early trade

The Pakistan Stock Exchange (PSX) continued its record-breaking momentum on Thursday, with the benchmark KSE-100 Index advancing by more than 1,200 points

KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking momentum on Thursday, with the benchmark KSE-100 Index advancing by more than 1,200 points during the opening session as strong investor confidence carried over from the previous trading day.

By around 9:40am, the KSE-100 Index was trading at 185,307.38 points, reflecting a gain of 1,257.28 points, or 0.68%, compared to the previous close. The continued rally pushed the market to fresh all-time highs, extending the bullish trend witnessed since the beginning of the new fiscal year.

Market participants said buying activity remained broad-based, with investors showing strong interest in heavyweight sectors such as commercial banking, fertilisers, oil and gas exploration, and power generation. Several index-leading companies traded firmly in positive territory, including Hub Power Company (HUBCO), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Meezan Bank Limited (MEBL), and United Bank Limited (UBL).

The latest gains follow Wednesday’s remarkable performance when the PSX kicked off fiscal year 2026-27 with one of its strongest sessions in recent months. The benchmark KSE-100 Index surged by 3,748.40 points, or 2.08%, to close at a record level of 184,050.10 points.

Analysts attributed the rally to improving macroeconomic indicators, including expectations of lower inflation, easing international crude oil prices, and growing optimism that the State Bank of Pakistan (SBP) may reduce its benchmark interest rate in the coming months. Investors believe a softer monetary policy could support economic activity, improve corporate earnings, and encourage greater participation in the equity market.

Despite the strong performance in Pakistan, global financial markets painted a mixed picture on Thursday as Asian equities came under pressure amid profit-taking in technology stocks and investor caution ahead of key economic data from the United States.

Regional markets weakened after investors shifted away from semiconductor shares that had posted exceptional gains during the previous quarter. Traders also remained focused on the upcoming U.S. non-farm payrolls report, which is expected to provide fresh clues about the direction of the Federal Reserve’s monetary policy and future interest rate decisions.

Meanwhile, international oil prices declined to their lowest levels in nearly four months. Brent crude slipped around 0.8% to trade near $71 per barrel after U.S. President Donald Trump said discussions with Iran in Qatar had been constructive. Market sentiment was also supported by increased tanker traffic through the Strait of Hormuz, easing concerns over potential supply disruptions.

Across Asia, MSCI’s broad index of Asia-Pacific shares outside Japan fell 0.8%, while Japan’s Nikkei 225 lost 1.1%, extending losses recorded at the start of the quarter.

South Korea’s KOSPI index dropped 2.7%, adding to the previous session’s decline as investors booked profits in major technology companies following a sharp rally driven by artificial intelligence-related demand.

Chipmaker SK Hynix fell 7.7%, while Samsung Electronics declined 6.2%. The weakness came despite renewed optimism surrounding the artificial intelligence sector after reports suggested that Meta Platforms is developing a cloud computing business aimed at commercialising surplus AI computing capacity. The report helped lift Meta’s shares by nearly 9% in overnight U.S. trading.

Market analysts said investors will continue to monitor domestic economic developments alongside global market trends, with interest rate expectations, inflation data and corporate earnings likely to remain the key drivers of sentiment in the coming weeks.