The Pakistan Stock Exchange (PSX) continued its bullish run on Tuesday, driven by investor optimism over Pakistan’s Staff Level Agreement (SLA) with the International Monetary Fund (IMF) as well as expectations of strong corporate performance and potential Saudi investment.
During intraday trade, the benchmark KSE-100 index touched an intraday high of 168,197.47, up 2,171.23 or 1.31% from its previous close of 166,242.90 points. It hit a low of 166,923.59 points, still up 680.69 points or 0.41%.
Market expert and managing director of Ismail Iqbal Securities, Ahfaz Mustafa, attributed the bullish sentiment to a mix of macroeconomic and corporate factors. “The successful SLA, the upcoming earnings season and the first sale of a state-owned company – First Women Bank – are fueling positive sentiments,” he said.
“Talk of investment from Saudi Arabia and current account surpluses also add to the optimism,” he added.
Pakistan’s balance of payments returned to surplus in September as the trade deficit narrowed, providing temporary relief to the country’s external finances.
The current account had a surplus of $110 million in September, compared with a deficit of $325 million in the previous month and a deficit of $52 million in September 2024, according to State Bank of Pakistan data released on Monday.
But in the first quarter of fiscal year 2026, the country’s current account deficit rose 18% to $594 million. In September, the current account reported a surprise surplus that surprised analysts and markets when expectations were for a deficit. The last time a profit was recorded was in June.
Saad Hanif, head of research at Ismail Iqbal Securities, said the profit was a significant upside surprise compared to industry expectations for a loss of between $400 million and $500 million.
“The discrepancy likely stems from timing and accounting adjustments between customs and balance of payments reporting,” Hanif said. “This positive surprise could provide temporary support,” he added.
