The Pakistan Stock Exchange (PSX) witnessed a massive 2,202-point rally, allowing the benchmark index of the exchange, KSE-100 index, to cross the 136,500 point resistance level, setting a new all-time high. According to reports, shares climbed rapidly on Monday as investor confidence surged because of improved economic indicators.

The aforementioned improvement in indicators refer to the recent improvement in Pakistan’s foreign exchange reserves, spike in remittances, and reports of strong demand for automobiles during fiscal year (FY) 2024-25.

A statement from the Prime Minister’s Office linked the PSX’s recent upward trajectory to the “business community’s growing confidence in Pakistan’s economy.” Prime Minister Shehbaz Sharif has also highlighted how the federal government is committed to provide a business-friendly environment. 
 
These developments caused the index to open in the green in the early hours of the day, with the upwards momentum continuing until closing hours. The KSE-100 index reached an intraday high of 136,841.49 points. The index peaked at approximately 3:27 PM, after which the market closed at a lower, yet respectable, 136,502.53 points.

For reference, the KSE-100 closed at 134,299.766 points on Friday, after which the index recorded a growth of 1.64 percent during trading hours on Friday, leading to a 2,202.77 point rise. The market displayed a slowdown around 9:30 AM as the KSE-100 hit its intraday trading low of 134,937.43 points.

Of the 18 indexes listed on the exchange, 16 remained in the green with the All-share index (ALLSHR) growing by 1.26 percent, which translates into a 1,061.74 point rise in the index. Unlike the KSE-100, which tracks the performance of the 100 largest and most liquid companies, the ALLSHR index records the performance of all publicly listed companies on the PSX.

A number of companies witnessed a rise in share prices, with PICIC Insurance Limited (PIL) and Crescent Star Insurance Limited (CSIL) winning big, to the tune of growth rates that sat at 29.33 percent (PIL) and 28.78 percent (CSIL). 

However, not every publicly listed stock witnessed an improvement, as many companies witnessed sharp declines. Of these declining companies, the one that fared the worst during intraday trading was Trust Modaraba (TRSM), which posted a 12.95 percent decline in its position.

Recent reports have outlined the trend for the period following the coming week, suggesting that the KSE-100 index could cross 165,000 points by the middle of FY 2025-26, owing to a drop in interest rates and an improved state of the wider economy.