Pakistan Stock Exchange Reaches Record High Despite Flood warnings
KARACHI: the Pakistan Stock Exchange (PSX) continued its upward trend Tuesday, achieving a new all-time high despite ongoing concerns regarding widespread flooding in Punjab and potential super floods in Sindh.
The benchmark KSE-100 index climbed significantly, ultimately closing at 150,975 points – a gain of 1,004 points, representing a 0.67% increase. Intraday trading saw the index reach as high as 151,000 points, extending its recovery for the third consecutive trading session.
The positive performance was largely driven by gains in key sectors, with Engro Holdings, Fauji Fertiliser, Engro Fertiliser, Bank Al-Habib, and Bank Alfalah contributing a combined 938 points to the overall increase, according to Topline Securities.
several economic indicators contributed to the bullish market sentiment. Foreign exchange reserves have risen, and consumer inflation registered at 3% year-on-year. August saw a 7% year-on-year increase in oil sales. Anticipation of government expenditure related to post-flood reconstruction efforts also played a role.
Analysts noted growing investor interest in the fertiliser sector, fueled by expectations of a government relief package aimed at supporting farmers impacted by recent crop damage. Increased demand for urea and DAP to restore soil fertility is anticipated to assist fertiliser manufacturers in reducing existing inventories.Further bolstering confidence, Pakistan’s trade deficit narrowed to $2.86 billion in August, a decrease from $3.1 billion in July, indicating reduced import pressure and stable export levels – a positive sign for the country’s external sector.
While the market demonstrated strong performance, trading activity saw a slight decline. total trading volume decreased by 8.62% to 1.08 billion shares,and the traded value fell by 9.05% to Rs44.24 billion. The Bank of Punjab remained the most actively traded stock for the third consecutive day,with 174.3 million shares changing hands,demonstrating continued investor engagement.
market analysts identify the 150,000-point level as a strong support level, supported by the narrowing trade deficit and optimism surrounding agricultural relief measures.
with current momentum and healthy liquidity, the PSX is expected to continue its positive trajectory and potentially reach new peaks in the coming sessions.Published in Dawn, September 3rd, 2025
