Karachi ( The COW News Digital) The Pakistan Stock Exchange (PSX) experienced a strong bullish trend on Tuesday as the benchmark KSE-100 Index surged by 950 points, driven by renewed investor confidence and improved economic indicators.
The trading day began on a positive note, with the KSE-100 index initially rising by 100 points, reaching 122,346 points. As the day progressed, optimistic market sentiment continued to build, leading to a further gain of 358 points, bringing the index to 122,604.
By the end of the session, the market had registered a significant 950-point gain, closing at 123,196 points. Analysts are attributing the strong rally to a combination of economic policy stability, expected reforms, and signs of fiscal discipline by the government.
“This surge is a reflection of investor optimism stemming from clarity on future economic direction,” said a senior analyst at Arif Habib Limited. “Improved macroeconomic indicators and policy consistency have helped restore trust in the market.”
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The rally was also driven by speculation that the State Bank of Pakistan may consider lowering interest rates in its upcoming monetary policy review, aiming to support growth amid easing inflation.
Heavy buying was witnessed across key sectors, including banking, energy, and construction, with blue-chip stocks attracting significant investment. Trading volumes increased noticeably, reflecting heightened participation from both institutional and retail investors.
Experts believe the momentum reflects growing foreign investor interest, encouraged by attractive valuations and expectations of political stability. The PSX has shown resilience in recent weeks, indicating that investors are gradually returning to the market following a period of uncertainty.
“This level of growth suggests broader optimism about Pakistan’s economic recovery,” said another market observer. “If current trends continue, we may see further upside in the days ahead.”
However, financial experts advise caution, highlighting the need to monitor global oil prices, geopolitical tensions, and international market trends that could impact investor behavior in the region.
For now, the 950-point gain represents a major psychological and technical boost for the PSX, signaling a positive outlook for the capital markets and a growing appetite for risk among investors.
