PSX Index Surges 188,000 on Hopes of Interest Rate Cut
PSX index surges 188000 as investors bet on an interest rate cut in the next monetary policy meeting. The strong rally pushed the benchmark KSE-100 index to a fresh all‑time high, even though Pakistan’s current account deficit and foreign investment numbers looked weak.
According to market reports, local mutual funds led broad‑based buying, which helped lift key stocks and support overall sentiment at the Pakistan Stock Exchange. For many traders, the latest move shows that liquidity and rate‑cut hopes are currently more powerful drivers than macroeconomic worries.
What Happened as PSX Index Surges 188000?
On Tuesday, the KSE‑100 index crossed the 188,000‑point mark for the first time in history. The PSX index surges 188000 and finally closed around 188,622 points, up about 860 points, after a volatile session with both sharp highs and lows during the day.
Topline Securities reported that the index touched an intraday high near 188,958 and a low around 187,192 before bulls gained control again. The PSX index surges 188000 mainly due to strong contributions from heavyweight stocks in energy, engineering and holding companies.
Which Stocks Drove the Rally as PSX Index Surges 188000?
Brokerage data shows that a few major names added a big chunk of points when the PSX index surges 188000. Among them were:
- Engro Holdings
- Pakistan Petroleum (PPL)
- Sazgar Engineering Works
- Oil and Gas Development Company (OGDC)
- Pakistan State Oil (PSO)
These five companies together added around 661 points to the KSE‑100 index. However, losses in Meezan Bank, Hub Power and United Bank Limited (UBL) cut about 249 points from the benchmark, showing that the rally was strong but not one‑sided.
Market Activity: Volumes and Value
The PSX index surges 188000 in a session where activity remained healthy and broad‑based. Trading volume increased by about 2.26% to reach nearly 1.22 billion shares, while the total traded value went up 1.5% to around Rs63.8 billion.
Hascol Petroleum led the volume chart with roughly 113 million shares changing hands. This shows that both blue‑chip and mid‑cap names were actively traded as the PSX index surges 188000, supported by strong liquidity and aggressive value hunting.
Macroeconomic Concerns in the Background
Interestingly, the PSX index surges 188000 despite fresh data showing a return to a current account deficit and weakness in foreign investment. Pakistan posted a current account deficit of about $244 million in December 2025, compared to surpluses of $454m in December 2024 and $98m in November 2025.
During the first half of FY26, the current account swung to a deficit of around $1.17 billion, after showing a surplus of $957m in the same period last year. At the same time, there was a net foreign direct investment outflow of about $135m in December, highlighting continued external‑sector stress even as the PSX index surges 188000.
Why Is the PSX Index Surging Despite Weak Data?
Market participants say that when the PSX index surges 188000, the main driver is expectations of a policy rate cut rather than short‑term macro numbers. Lower interest rates can reduce borrowing costs, support corporate earnings, and make equities more attractive compared with fixed‑income instruments.
Ali Najib, deputy head of trading at Arif Habib Ltd, described the session as a tug of war between bulls and bears, but noted that bulls finally dominated and pushed the market to close on a positive note. According to him, sentiment remained upbeat even with some profit‑taking, as investors focused on potential monetary easing and stronger earnings.
IPO and Liquidity Signals as PSX Index Surges 188000
The PSX index surges 188000 at a time when the market is also seeing strong interest in new offerings. The Signature Residency Developmental REIT Scheme, which includes both residential and commercial components, was oversubscribed, signalling robust investor appetite for real estate‑backed products.
Such oversubscription is often seen as a sign of rising confidence and available liquidity in the system. It also suggests that investors are willing to look beyond short‑term risks as long as the interest rate and earnings outlook remains supportive.
What Could Happen Next for the PSX?
As the PSX index surges 188000 and stays near record levels, traders are now watching three main factors:
- The upcoming monetary policy decision and timing of any rate cuts.
- Corporate earnings for key index heavyweights.
- External account and currency trends, which can affect foreign investor sentiment.
Analysts expect near‑term volatility to continue, with possible pullbacks as some investors book profits after such a strong run. However, many still see dips as selective buying opportunities as long as the overall story of easing rates and improving earnings stays intact.
