PSX surges on macro optimism, strong earnings

A bullish momentum returned to the bourse on Tuesday, as military assurances, upbeat economic data, and easing policy expectations reignited investor optimism.

“Stocks trading at a new all-time after business leaders meetup with Field Marshal Munir assured military’s support for economic progress,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

“Likely SBP policy easing in the announcement next week and expectations over strong financial results and annual payouts played catalyst role in bullish activity at PSX,” he added.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 139,703.29, gaining 1,485.71 points, or 1.07%, before retreating to a low of 138,197.81, down 19.77 points, or 0.01%.

A delegation of leading business figures—led by former caretaker federal minister Gohar Ejaz—met Field Marshal Asim Munir to discuss the country’s economic outlook and ongoing reforms.

The delegation included APTMA Chairman Kamran Arshad, SM Tanvir, and presidents of FPCCI and LCCI.

Ejaz said the group briefed the military leadership on the improving macroeconomic landscape and reaffirmed the business community’s support for the government’s reform agenda. He emphasised the need for rate cuts and responsive budget adjustments to support business-led growth.

Analysts expect the bullish momentum to persist, buoyed by growing macroeconomic confidence, anticipated monetary easing, and movement on the government’s privatisation agenda.

Finance Minister Muhammad Aurangzeb held high-level talks with US officials on Saturday, seeking tariff relief and stronger economic ties.

Describing the ongoing discussions as a “game changer,” Aurangzeb noted the United States is Pakistan’s largest trading partner and called for a long-term strategic partnership focused on investment and technology. He characterised the talks as positive and forward-looking.

Macroeconomic data released last week added to the optimism. Pakistan recorded a current account surplus of $328 million in June 2025, helping FY25 close with a full-year surplus of $2.1 billion — the first in 14 years. The surplus, equivalent to 0.5% of GDP, was driven by record remittances, import compression, and sustained inflows under the IMF’s $7 billion loan programme.

Meanwhile, auto sector performance remained resilient, with auto financing rising 20% year-on-year to Rs277 billion in June — signalling strengthening consumer sentiment and recovery in durable goods demand.

On Monday, the KSE-100 Index had declined by 379.78 points, or 0.27%, to 138,217.58 points from 138,597.36 points recorded in the previous session. The index touched a high of 139,201.16 and a low of 138,149.57 during the day. 

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