KEY POINTS
- Rally driven by IMF programme, rate cuts, and strong earnings
- Cement sector led gains with 12% YoY rise in August dispatches
- Rupee appreciated for the 19th straight session, closing at 281.71
KARACHI, Pakistan: The Pakistan Stock Exchange (PSX) continued its historic rally on Wednesday, with the benchmark KSE-100 Index closing at a record 152,201.87 points, up 1,226.39 points or 0.81% from the previous session.
The index touched an all-time intra-day high of 152,805.30 before settling above the 152,000 level for the first time in history.
Analysts attributed the surge to macroeconomic stability, robust corporate earnings, and heavy participation from local institutions.
“The rally is driven by improving macro stability and strong corporate earnings,” said Waqas Ghani, Head of Research at JS Global.
“Cyclical sectors are leading the charge, with cement stocks benefiting from stronger dispatches and profitability. Banks have remained resilient despite lower interest rates, while auto stocks are also in the spotlight due to improved sales.”
Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder that Pakistan’s ongoing IMF programme has played a crucial role in shoring up investor confidence.
“Sharp interest rate cuts have redirected funds away from traditional asset classes and into equities, while heavy inflows from local institutions have provided much-needed liquidity,” he added.
Brokerage house Topline Securities highlighted the cement sector’s performance, noting that industry dispatches rose more than 12% year-on-year in August 2025, reviving optimism across the board.
On Tuesday, the KSE-100 had already gained 1,004 points (0.67%), closing at 150,975.48 points and setting the stage for Wednesday’s record-breaking session.
Global Market Context
Internationally, markets remained under pressure as global bond yields continued to climb. The 30-year Japanese government bond yield hit a record 3.255%, following a similar trend in U.S. Treasuries and UK gilts.
Japan’s Nikkei slipped 0.5%, while MSCI’s Asia-Pacific index outside Japan edged up 0.1%. Australia’s S&P/ASX 200 dropped 0.9% after weak GDP data.
On Wall Street, stocks closed lower after fresh data pointed to a continuing contraction in U.S. manufacturing. Attention now turns to upcoming services data in Europe and U.S. labour figures on Friday, which could influence the Federal Reserve’s next rate decision.
Meanwhile, U.S. President Donald Trump said his administration would ask the Supreme Court to expedite a ruling on tariffs recently struck down by an appeals court, although they will remain in place until October 14.
Local currency and market performance
The Pakistani rupee extended its winning streak, appreciating for the 19th consecutive session. The currency closed at 281.71 against the U.S. dollar, gaining Rs 0.01 in the interbank market.
Trading activity remained strong. Overall market volume stood at 1.04 billion shares, slightly down from 1.08 billion a day earlier, while the total value of shares traded rose to Rs 51.31 billion from Rs 44.42 billion.
Pace (Pak) Ltd led the volume charts with 89.29 million shares, followed by Fauji Foods Ltd (73.36 million) and Bank of Punjab (51.57 million).
Among major gainers, Hoechst Pakistan Limited surged by Rs210.03 to close at Rs3,999.38, while PIA Holding Company Limited-B added Rs158.30 to settle at Rs26,815.80. On the downside, Unilever Pakistan Foods Limited shed Rs281.29 to Rs32,703.51, and Rafhan Maize Products Company Limited fell Rs68.89 to Rs9,605.11.
In total, 477 companies’ shares were traded on Wednesday: 242 advanced, 204 declined, and 31 remained unchanged.
