The Pakistan Stock Exchange (PSX) rebounded strongly on Tuesday, with the benchmark KSE-100 Index gaining more than 1,400 points as investors responded positively to clarity over the State Bank of Pakistan’s policy rate and improving foreign exchange reserves.
The KSE-100 opened on a bullish note and climbed as much as 2,017.46 points during early trading to reach an intraday high of 169,988.12. Buying remained visible across several key sectors throughout the session.
At the close, the benchmark index settled at 169,392.32, gaining 1,421.67 points or 0.85% from the previous session.
KSE-100 Market Performance
| Indicator | Figure |
|---|---|
| Previous Close | 167,970.65 |
| Intraday High | 169,988.12 |
| Intraday Gain | 2,017.46 points |
| Closing Level | 169,392.32 |
| Net Gain | 1,421.67 points |
| Percentage Gain | 0.85% |
Buying was recorded in automobile assemblers, cable and electrical goods, cement, commercial banks, engineering, fertiliser, oil and gas exploration companies, oil marketing companies, power generation and distribution companies, and refineries.
Investor confidence improved after the State Bank of Pakistan decided to keep its policy rate unchanged at 11.5% at its September 14 monetary policy meeting.
The central bank cited intensifying Middle East tensions, elevated global commodity prices and continuing supply-chain disruptions as key risks to the economic outlook.
The Monetary Policy Committee noted that domestic macroeconomic indicators remained broadly aligned with expectations. Headline inflation increased to 11.1% year-on-year in August, compared with 9.2% in July, while core inflation remained slightly below expectations.
The market also received support from an improvement in Pakistan’s external position. SBP foreign exchange reserves increased to a record $21.4 billion, supported by proceeds from a $3 billion Eurobond and continued purchases from the interbank market.
The latest reserve position has already surpassed the central bank’s $21 billion target for June 2027, nearly nine months ahead of schedule.
International markets remained volatile as rising oil prices and higher bond yields weighed on investor sentiment.
Benchmark 10-year US Treasury yields reached their highest level since 2007, while Asian equities extended losses. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8%, with South Korea declining 1.18%.
Japan’s Nikkei dropped 0.32%, while Taiwan’s market declined 0.43%. European markets were mixed in early trading, while US S&P 500 E-mini futures were down 0.22%.
Oil prices also moved higher as concerns over global supply disruptions persisted following attacks on Saudi Arabian energy infrastructure.
Brent crude futures rose $1.37, or 1.3%, to $107.05 per barrel, while US West Texas Intermediate futures increased $1.53, or 1.51%, to $102.92 per barrel.
Despite ongoing regional tensions and higher global oil prices, improved domestic reserves and monetary policy clarity helped support buying at the PSX, allowing the KSE-100 to recover sharply from the previous session’s decline.
