The Pakistan Stock Exchange (PSX) extended its record-setting rally on Tuesday as investors continued aggressive buying amid growing confidence in the country’s economic outlook and easing geopolitical tensions in the region.

The benchmark KSE-100 Index gained 3,353.15 points, or 1.89%, to close at 180,392.98 points, after touching an intra-day high of 180,503.55 points and a low of 177,039.83 points.

Investor sentiment remained upbeat as market participants responded positively to Pakistan’s diplomatic efforts aimed at supporting regional peace and stability. Expectations of lower global energy prices further strengthened risk appetite, particularly for sectors sensitive to inflation and input costs.

International oil prices stayed under pressure on hopes that the reopening of the Strait of Hormuz would help normalize global supply flows. The prospect of softer energy prices eased inflation concerns and improved the economic outlook for oil-importing countries such as Pakistan, encouraging fresh buying across the market.

The sustained rally reflects growing investor optimism over macroeconomic stability, improving external-sector indicators, and the potential for stronger corporate earnings in a lower inflation and interest-rate environment.

KTrade Securities Ahmed Sheraz wrote that the KSE-100 Index closed at 180,392 points, gaining 3,353 points (+1.89% DoD) as strong buying interest persisted throughout the session. The benchmark remained firmly in positive territory, supported by broad-based participation across key sectors and continued investor optimism following recent macroeconomic and budget-related developments.

Read: In stellar performance, PSX gains 4,640 points

Trading activity remained robust, with KSE-100 volumes reaching 611 million shares. The rally was primarily driven by heavyweight stocks including United Bank, Engro Holdings, Bank Al Habib, National Bank, Pakistan Petroleum and Meezan Bank, which collectively contributed the largest share of Index gains. On a sectoral basis, commercial banks, investment banks, and oil & gas exploration companies were the key contributors to the market’s advance.

On the macro front, investor sentiment remained supported after the State Bank of Pakistan kept the policy rate unchanged in its monetary policy announcement on Monday, a move largely in line with market expectations. Going forward, Sheraz believed that investors are likely to remain focused on inflation trends, energy price trends, economic indicators, and the implementation of FY27 budget measures for further market direction. 

Trading volume jumped to 1.22billion from Monday’s close of 988million. Value of traded shares stood at Rs70.2billion. Shares of 497 companies were traded.

Of these, 304 stocks rose, 165 fell and 28 remained unchanged. Lotte Chemical emerged as volume leader with trading in 108.2million shares, edging down Rs0.17 to close at Rs28.52.