Pakistan Stock Exchange (PSX) extended its winning streak on Tuesday, driven by renewed investor confidence following Pakistan’s staff-level agreement (SLA) with the International Monetary Fund (IMF) and growing optimism about potential Saudi investments.
During intraday trading, the benchmark KSE-100 Index surged to an impressive high of 168,197.47 points, gaining 2,171.23 points or 1.31% from the previous close of 166,242.90. Even at its lowest point of the day — 166,923.59 — the index remained up by 680.69 points, reflecting continued market strength.
Market experts say the upbeat mood stems from a mix of macroeconomic stability and promising corporate outlooks. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, credited the rally to multiple positive triggers. “The successful IMF SLA, the upcoming result season, and the first sell-off of a state-owned enterprise — the First Women Bank — are fueling positive market sentiment,” he explained.
He added that discussions surrounding Saudi investments in Pakistan and the country’s improving external balance are further lifting investor spirits.
RELATED: Bullish trend grips PSX after ceasefire with Afghanistan, IMF tranche deal
Adding to the optimism, the State Bank of Pakistan (SBP) reported that Pakistan’s current account swung back to a $110 million surplus in September — a remarkable turnaround from the $325 million deficit in August. This marks the first surplus since June and provides temporary relief for the country’s struggling external finances.
In comparison, the same month last year saw a deficit of $52 million. Despite this month’s encouraging data, the first quarter of FY2026 still posted an 18% higher current account deficit at $594 million, signaling that challenges remain.
According to Saad Hanif, Head of Research at Ismail Iqbal Securities, the surplus was a “significant upside surprise” against expectations of a $400–500 million deficit. “The divergence likely stems from timing and accounting adjustments between customs and balance of payments reporting,” he noted, adding that this “positive surprise could provide temporary support” to the local currency and equities.
