The Pakistan Stock Exchange (PSX) witnessed a historic rally on Tuesday as the benchmark KSE-100 Index surged past the 180,000 mark for the first time, driven by strong investor sentiment, pro-business budget measures, and easing geopolitical tensions in the Gulf region.
The benchmark index climbed 3,353 points, or 1.89%, to close at an all-time high of 180,392.97 points. During intraday trading, the index touched a high of 180,503.55 points, marking one of the strongest single-day performances in recent months.
Market participation remained largely positive, with 81 companies in the KSE-100 index closing in the green compared to 19 that ended in the red, reflecting broad-based investor confidence.
The rally was led by major sectors including banking, energy, and fertilizers. Key contributors to the index’s upward movement included United Bank Limited (UBL), Engro Holdings, Bank AL Habib, National Bank of Pakistan, and Pakistan Petroleum Limited. Strong gains were also recorded in stocks such as SSGC, SNGPL, PSX, Pakistan Aluminium Beverage Company (PABC), and UBL.
Investor sentiment was significantly boosted by the federal budget for FY2026–27, which introduced several business-friendly measures. These included relief in super tax, reduced withholding taxes on property transactions, lower export-related taxes, and continued incentives for the information technology sector.
Market analysts believe these measures are likely to improve corporate profitability and support broader economic growth in the coming months.
In addition to domestic policy support, the market also reacted positively to reports of a preliminary understanding between the United States and Iran aimed at reducing regional tensions in the Gulf. The development eased concerns over potential disruptions to global oil supply routes, improving investor risk appetite worldwide.
Further support came from the State Bank of Pakistan’s decision to maintain the policy rate at 11.5%, signaling confidence in the country’s improving macroeconomic stability and providing clarity on future borrowing conditions.
The broader market also followed the bullish trend, with the All-Share Index rising 1.62% to close at 108,164.80 points. Trading activity remained strong, with total market volume reaching 1.22 billion shares and traded value recorded at Rs. 70.22 billion.
The KSE-100 Index has now gained approximately 43.6% during the current fiscal year, highlighting strong investor confidence and sustained momentum in Pakistan’s equity market amid improving economic indicators.
