PSX 100-index hits record high before sliding into negative zone

Pakistan Stock Exchange (PSX) experienced volatility, reaching a record high before retreating into negative territory.

The market initially surged, crossing the historic 120,000-point milestone, but failed to sustain its gains. The KSE-100 Index dropped 196 points, closing at 118,738 points, after touching an all-time high of 120,796 points.

The decline was attributed to global trade tensions and tariff disputes, which impacted stock markets worldwide, including Pakistan.

Sector-wise activity saw selling pressure in oil and gas stocks, while banking sector shares witnessed increased buying interest.

Earlier in the day, Pakistan Stock Exchange (PSX) reached a historic milestone as the KSE-100 Index crossed the 120,000-point mark for the first time in history.

During trading, the index saw a surge of over 1,800 points, reaching 120,793 points at one stage. Earlier, it had gained 1,427 points, touching 120,365 points.

The sharp rally reflects strong investor confidence and bullish sentiment in the market, setting a new benchmark for the PSX.

Since the beginning of January 2025, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index has demonstrated notable growth.nOn January 1, 2025, the index surged by approximately 1,900 points, closing at 117,008.08.

The bullish momentum was driven by strong buying interest in key sectors such as automobiles, cement, commercial banks, fertilizers, and oil and gas exploration companies.

The positive sentiment was influenced by expectations of a policy rate cut by the State Bank of Pakistan (SBP), following a decrease in the country's headline inflation to 4.1% in December 2024.iAdditionally, the launch of 'Uraan Pakistan,' a five-year national economic plan aimed at sustainable growth, contributed to investor confidence.

Mid-January saw the KSE-100 Index continue its upward trajectory, gaining 574 points to close at 114,804.17 on January 15.

The rise was attributed to easing political uncertainty, rising global crude oil prices, and speculation about a potential reduction in the SBP's policy rate, sectors such as banking, oil and gas, and automobiles experienced significant gains during this period.

The PSX has maintained a strong performance since January 2025, reflecting growing investor confidence and favorable economic indicators.