The Pakistan Stock Exchange (PSX) continued its upward momentum on Wednesday, with the benchmark KSE-100 index surging by 673 points to reach 86,513 in intraday trade.
This rally reflects investor optimism surrounding the Shanghai Cooperation Organisation (SCO) summit in Islamabad, as well as broader hopes for regional political and economic stability.
The strong market performance is further fueled by ongoing corporate earnings season, which has seen bullish investors pour capital into high-valuation stocks, propelling the index to new record highs.
The two-day SCO summit, which began on Tuesday, has been marked by significant diplomatic engagements, including the visit of Indian Foreign Minister Subrahmanyam Jaishankar — the first such visit in nearly a decade. The arrival of regional leaders and the smooth conduct of the summit have contributed to lifting investor sentiment.
Khurram Schehzad, CEO of Alpha Beta Core, noted that the successful hosting of the SCO summit strengthened investor confidence. He pointed out that major global events, particularly the presence of Indian representatives, have eased concerns surrounding Pakistan’s regional political landscape.
Saad Ali, Director of Research at Intermarket Securities, explained that the market was further buoyed by progress on government legislative initiatives and the decreased likelihood of major political protests by the PTI, reducing uncertainties.
In addition, Ahsan Mehanti from Arif Habib Corporation attributed the rally to reduced political uncertainty, economic gains from the SCO summit, and a decrease in bond yields. He also highlighted the government’s focus on privatising state-owned enterprises as a contributor to bullish market activity.
Tahir Abbas, Head of Investment Research at Arif Habib Ltd (AHL), added that investors were strategically positioning themselves to take advantage of financial results, keeping the market on an upward trajectory. Abbas further mentioned that the central bank is expected to reduce interest rates by 200-250 basis points in November, which could maintain the market’s strong performance.
The market’s positive momentum has been steady since the approval of the International Monetary Fund’s (IMF) $7 billion bailout deal, aimed at stabilising Pakistan’s economy. The IMF programme is linked to continued strong financial support and reforms for macroeconomic stability.
