The Pakistan Stock Exchange (PSX) continued its upward trend on Tuesday, driven by investor optimism over the Staff Level Agreement (SLA) between Pakistan and the International Monetary Fund (IMF), as well as expectations of strong corporate results and potential Saudi investments.
During intraday trading, the benchmark KSE-100 index hit an intraday high of 168,197.47, gaining 2,171.23, or 1.31 percent, 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 mix of macroeconomic and corporate factors. “The success of SLA, the upcoming earnings season and the first sale of a public company – First Women Bank – are fueling positive sentiments,” he said.
“Discussions about Saudi Arabia’s investments and current account surplus also add to the 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 by 18 percent, to $594 million. In September, the current account recorded a surprising surplus which took analysts and markets by surprise, while 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 surprise compared to industry expectations of a deficit of between $400 million and $500 million.
“The discrepancy likely arises from timing and accounting adjustments between customs and balance of payments declarations,” Hanif said. “This positive surprise could provide temporary support,” he added.
