Karachi, May 15, 2025: Bullish momentum returned to the Pakistan Stock Exchange (PSX) on Thursday, pushing the benchmark KSE-100 Index to a historic all-time high amid easing geopolitical tensions, improved macroeconomic indicators, and positive investor sentiment across sectors.
The KSE-100 Index soared by 1,425.39 points, or 1.20%, to close at 119,961.91, surpassing previous records. During intraday trading, the index reached an unprecedented high of 119,990.30 points, registering a gain of 1,453.78 points (1.22%), supported by robust institutional buying.
“Refinery stocks rallied after reports of a Rs34 billion compensation package for the sector. Positive momentum was already in place due to discussions surrounding the IMF disbursement and the regional ceasefire,” said Sana Tawfik, Head of Research at Arif Habib Limited.
Tawfik also cited movement in Oil Marketing Companies (OMCs) on expectations of higher margins, while a glowing international media spotlight has further boosted sentiment.
Just a day earlier, the State Bank of Pakistan (SBP) confirmed receiving the second IMF tranche of $1.023 billion under the Extended Fund Facility (EFF), with the inflow expected to reflect in official reserves by the week ending May 16.
Global investors have also taken note of Pakistan’s economic turnaround. In a report published Wednesday, US financial magazine Barron’s called Pakistan a “macroeconomic miracle,” citing a dramatic drop in inflation—from nearly 40% to near zero—a tripling of the KSE-100 Index, and a doubling of Eurobond prices over the past two years, despite ongoing tensions with India.
Meanwhile, in a widely covered address at the Saudi-US Investment Forum 2025, US President Donald Trump credited his administration with “stopping a nuclear war” between India and Pakistan, after brokering a ceasefire between the two rivals. Trump also emphasized his desire to expand bilateral trade with both nations and hinted at a longer-term diplomatic resolution for the Kashmir issue.
Earlier this month, the SBP surprised markets with a 100 basis point interest rate cut, lowering the benchmark rate to 11%, citing steep drops in electricity tariffs and food prices as drivers of disinflation.
Following three days of gains, the KSE-100 had traded flat on Wednesday, closing slightly lower by 39.36 points at 118,536.52. That session saw the index fluctuate between a high of 119,460.54 and a low of 118,148.65.
