The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Tuesday, with the benchmark KSE-100 index closing above the 180,000-point mark for the first time. The index surged 1,886.91 points, or 1.06%, to settle at 180,301.70, after touching a day's low of 179,020.11. Broad-based buying was observed across major sectors, including auto assemblers, cement, commercial banks, oil and gas exploration, oil marketing firms, power generation, and refineries. Index-heavy stocks remained firmly in positive territory, underpinning the market's strong performance.
Investor Sentiment and Market Drivers
KTrade Securities' equity trader Ahmed Sheraz noted that the KSE-100 index closed in the green with gains of 1,887 points as improving investor sentiment and broad-based buying provided support across index-heavy sectors. Continued weakness in international oil prices remained a positive trigger for the market, with the largest index contributors being Fauji Fertiliser, Hub Power, and UBL. Going forward, the market is likely to continue finding support from subdued oil prices following a US-Iran agreement, with investors closely monitoring the next phase of technical talks, including discussions related to the Strait of Hormuz. On the domestic front, attention was expected to gradually shift towards the upcoming corporate results from listed companies, Sheraz said.
FY26 Performance and Record Volumes
Arif Habib Limited (AHL) highlighted that the KSE-100 delivered a stellar performance in FY26, surging 46% in US dollars and 44% in rupees, settling at 180,302 from 125,627 at the end of FY25. The market performed well driven by improved liquidity and the unlocking of fundamental value across key sectors, navigating periodic volatility from geopolitical developments. The average FY26 traded volume reached an all-time high of 913 million shares, while the average traded value climbed to $152 million, the highest since FY08. AHL Deputy Head of Trading Ali Najib observed that the PSX witnessed a strong session on Tuesday as the index reclaimed the 180k level, ending June with solid gains of 3.63% month-on-month. The rally was driven by ample liquidity, attractive valuations, and resilient investor sentiment despite intermittent geopolitical volatility.
Corporate Activity and Sector Contributions
On the corporate front, the Nishat Group increased its stake in Rafhan Maize to 74% following additional purchases from minority shareholders through a public offer, after acquiring a 51% stake from US-based Ingredion in December. Fauji Fertiliser, Hub Power, UBL, Engro Holdings, Mari Energies, Lucky Cement, PSX, Meezan Bank, Bank AL Habib, and HBL collectively added 1,598 points to the index. The index may advance towards its all-time high of 189k, supported by lower oil prices and rate-cut expectations, while inflation data and geopolitical developments remain key catalysts, Najib concluded.
Topline Securities' Analysis
Topline Securities remarked that the KSE-100 on Tuesday largely traded in positive zone, ending higher by 1.06%. "This positivity can be attributed to recovery after Monday's negative session as investors factored in lower oil prices," it said. Traded value-wise, Pakistan Petroleum (Rs1.6 billion), Mari Energies (Rs1.5 billion), OGDC (Rs1.5 billion), Hubco (Rs1.35 billion), Askari Bank (Rs1.3 billion), and the PSX (Rs1.25 billion) dominated activity. Topline mentioned that the KSE-100 recorded a 3.6% month-on-month increase in June, primarily driven by improved investor sentiment following the ceasefire/peace agreement between the US and Iran. The easing of geopolitical tensions reduced concerns over regional instability and oil price volatility, encouraging investors to increase their exposure to equities. "This positive sentiment, combined with expectations of improved economic stability, supported the upward movement in the KSE-100 index," it added.
Trading Volumes and Foreign Investment
On Tuesday, overall trading volumes decreased to 703.7 million shares compared to 869.4 million on Monday. The value of traded shares stood at Rs38.8 billion. In the ready market, shares of 492 companies were traded. Of these, 301 stocks rose, 162 fell, and 29 remained unchanged. Pakistan International Bulk Terminal was the volume leader with trading in 58.3 million shares, gaining Rs0.81 to close at Rs19.08. Foreign investors sold shares worth Rs1.12 billion, according to the National Clearing Company.
