The Pakistan Stock Exchange (PSX) continued its bull run on Tuesday, driven by investor optimism over Pakistan’s Staff Level Agreement (SLA) with the International Monetary Fund (IMF), as well as expectations of strong corporate results and possible Saudi investments.
During intraday trading, the KSE-100 benchmark index hit an intraday high of 168,197.47, gaining 2,171.23, or 1.31%, from the previous close of 166,242.90 points. It hit a low of 166,923.59 points, still up 680.69 points, or 0.41%.
Ahfaz Mustafa, market expert and CEO of Ismail Iqbal Securities, attributed the bullish sentiment to a combination of macroeconomic and corporate factors. “The successful SLA, the upcoming earnings season and the first sell-off of a state-owned company, First Women Bank, are fueling positive sentiments,” he said.
“Talks about Saudi Arabia’s investments and current account surplus also add to optimism,” he added.
Pakistan’s current account returned to surplus in September as the trade deficit narrowed, providing temporary relief to the country’s external finances.
The current account recorded a surplus of $110 million in September, compared to a deficit of $325 million in the previous month and a deficit of $52 million in September 2024, according to State Bank of Pakistan data released on Monday.
However, in the first quarter of fiscal 2026, the country’s current account deficit increased 18% to $594 million. In September, the current account balance recorded a surprising surplus that took analysts and markets by surprise, since expectations were for a deficit. The last time a surplus was recorded was in June.
Saad Hanif, head of research at Ismail Iqbal Securities, said the surplus was a significant upside surprise compared to industry expectations of a deficit ranging between $400 million and $500 million.
“The divergence is probably due to timing and accounting adjustments between customs and balance of payments reporting,” Hanif said. “This positive surprise could provide temporary support,” he added.
