KSE-100 Index Hits Intraday High of 140,077.85, Surging 1,618 Points
Investor confidence surged on Thursday as the Pakistan Stock Exchange (PSX) rallied following the announcement of a significant trade agreement between Pakistan and the United States. The landmark deal lifted market sentiment, driving the benchmark KSE-100 Index to a fresh intraday high of 140,077.85 a gain of 1,618.96 points, or 1.17%, from the previous close of 138,412.25.
The index also recorded an intraday low of 139,369.06, still reflecting a healthy rise of 956.81 points, or 0.69%.
Market analysts attributed the bullish trend to the diplomatic breakthrough, coupled with continued confidence in macroeconomic stability and policy continuity from the State Bank of Pakistan (SBP).
“This trade deal with the US marks a major diplomatic win, especially when compared to the rising tariffs faced by Indian exporters,” said AAH Soomro, an independent investment and economic analyst. “It reflects growing US–Pakistan economic alignment, which could bolster broader stability under the IMF programme.”
The trade agreement was finalized during a high-level meeting in Washington, where Finance Minister Muhammad Aurangzeb met with the US Secretary of Commerce and the US Trade Representative. Pakistan’s Ambassador to the US Rizwan Saeed Sheikh and Commerce Secretary Jawad Paul also attended the discussions.
According to a statement issued by Pakistan’s Ministry of Finance, the agreement aims to strengthen bilateral trade, improve market access, boost investment, and foster cooperation in sectors such as energy, minerals, information technology, and emerging industries including cryptocurrency.
Key elements of the deal include tariff concessions on Pakistani exports to the United States and commitments to support US investment in Pakistan’s infrastructure and development sectors, signalling a new era of economic cooperation.
Meanwhile, the SBP maintained its key policy rate at 11% during Wednesday’s Monetary Policy Committee meeting. The central bank cited ongoing inflation concerns, particularly from elevated gas tariffs, but maintained that inflation was likely to stabilize within the target range.
SBP Governor Jameel Ahmad, addressing the media post-meeting, projected inflation to remain between 5% and 7% during FY26, though temporary spikes could occur. He also noted that the trade deficit might widen in the near term as economic activity accelerates.
A day earlier, on Wednesday, the KSE-100 Index had closed up by 447.43 points (0.32%) at 138,412.25. The session saw the index fluctuate between a high of 139,018.88 and a low of 137,658.81.
The positive momentum in the equity market reflects growing investor optimism around Pakistan’s economic trajectory, buoyed by international partnerships and stable domestic policy.
