\u201cTariff deal and continued optimism is fuelling the rally,\u201d says analyst
\n Islamabad
\nThe equity market extended its bullish streak into the new week, surging past the 133,000 level for the first time ever in intraday trade, bolstered by optimism over trade negotiations, macroeconomic stability, and a robust earnings outlook.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 133,370.14 points, up 1,421.08 points, or 1.08%, from the previous close of 131,949.06.
\nDuring the session, the index climbed to an intraday high of 133,862.01, gaining 1,912.95 points, or 1.45%, and recorded a low of 132,467.12, reflecting a gain of 518.06 points, or 0.39%.
\n\u201cTariff deal and continued optimism is fuelling the rally. Technically, we\u2019ve breached multiple new highs. Earning season is also around the corner, so all this is fuelling the rally at the moment,\u201d said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
\nInvestor sentiment remains buoyant amid falling inflation, strengthening foreign exchange reserves, and renewed capital inflows. Analysts anticipate the positive momentum will continue, supported by a shift in investment from fixed income to equities due to higher taxation on alternative assets and lower yields.
\nThe PSX ended FY25 as the region\u2019s best-performing market, delivering a 60% total return. That momentum has carried into FY26, lifting the KSE-100 Index into uncharted territory. Average daily traded volumes (ADTV) surged by 31% WoW, indicating heightened investor participation.
\nThe rally has been underpinned by macroeconomic confidence. Pakistan secured $3.4 billion in Chinese rollover and refinancing, alongside another $1.5 billion from Middle Eastern lenders and multilateral partners.
\nThe rally has been underpinned by macroeconomic confidence. Pakistan secured $3.4 billion in Chinese rollover and refinancing, alongside another $1.5 billion from Middle Eastern lenders and multilateral partners.
\nThe State Bank of Pakistan\u2019s (SBP) reserves stood at $14.51 billion as of June 30.
\nInflation data reinforced bullish sentiment. The Consumer Price Index (CPI) for June slowed to 3.2% YoY, bringing FY25\u2019s average inflation to 4.5%, a steep fall from 23.4% in FY24. This opens room for potential interest rate cuts, enhancing the investment case for equities.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cTariff deal and continued optimism is fuelling the rally,\u201d says analyst Islamabad The equity market extended its bullish streak into the new week, surging past the 133,000 level for the first time ever in intraday trade, bolstered by optimism over trade negotiations, macroeconomic stability, and a robust earnings outlook. The Pakistan Stock Exchange\u2019s (PSX) benchmark […]<\/p>\n","protected":false},"author":2,"featured_media":486907,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-488870","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n