Stock Market's KSE-100 Index Reaches New High with Bulls Leading the Charge

Pakistan Stock Exchange Surges as US Rate Cut Expectations Boost Markets

Asian stocks rose on Tuesday, with the KSE-100 index in Pakistan leading the charge, buoyed by expectations of a US rate cut as early as next week. The index surged by 1,810 points, or 1.17%, to finish the session at 156,087.31 on Monday, and maintained its positive momentum throughout the trading day, reaching an intra-day high of 157,088.80.

The positive momentum was led by several key players, including ENGROH, FFC, MEBL, MARI, and EFERT, which collectively added 886 points to the index. On Tuesday, the largest contributors to the positive trend at the Pakistan Stock Exchange were Meezan Bank, TRG Pakistan, Hub Power Company (HUBC), and Oil and Gas Development Company (OGDC), collectively adding 403 points to the KSE-100 index. The index closed at 156,563.52 with a market capitalization rising to Rs 18.276 trillion.

The Pakistani rupee also maintained its positive momentum against the US dollar, settling at 281.61, a gain of Re0.01 against the greenback. This was the rupee's 23rd successive gain against the US dollar. The value of shares on the exchange decreased to Rs55.19 billion from Rs62.29 billion in the previous session.

Elsewhere, the Nasdaq notched a record-high close overnight, and Nasdaq futures extended the rally from the cash session and were last up 0.06%. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% in early trade. S&P 500 futures similarly ticked up 0.05%.

Expectations that the Federal Reserve would ease rates when it meets next week are breathing new life into the equities rally. However, political upheavals around the world kept currency and bond investors on edge on Tuesday.

In a significant development, Pakistan and the United States (US) signed a memorandum of understanding (MoU) worth $500 million to strengthen cooperation in the critical minerals sector. The MoU was signed between US Strategic Metals (USSM) and Pakistan's Frontier Works Organisation (FWO) at the Prime Minister's House.

On Monday, the PSX opened the week on a powerful bullish wave, surging to an all-time closing high. Overseas workers' remittances into Pakistan stood at $3.1 billion in August 2025, according to State Bank of Pakistan (SBP) data.

In conclusion, the Pakistani stock market continued its upward trajectory, buoyed by expectations of a US rate cut and strong domestic performances from key players. The rupee also maintained its positive momentum against the US dollar, and the PSX opened the week on a powerful bullish wave. The signing of the MoU between Pakistan and the US is also a positive development for the country's economy.