Uptrend continues in PSX on IMF deal, current account surplus

The Pakistan Stock Exchange (PSX) continued its rally on Tuesday, driven by investor optimism over Pakistan’s Staff Level Agreement (SLA) with the International Monetary Fund (IMF), as well as expectations of strong corporate results and potential investments in Saudi Arabia.

The benchmark KSE-100 was at 167,346.83 points, up 1103.93 points, or 0.66%, from its previous close of 166,242.90 points.

During intraday trading, the KSE-100 Index hit an intraday high of 168,197.47, up 2,171.23 or 1.31% from its previous close of 166,242.90. It hit a low of 166,923.59 points, up 680.69 points or 0.41%.

Market expert and Managing Director of Ismail Iqbal Securities, Ahfaz Mustafa, attributed the bullish sentiment to a mix of macro and corporate factors. “The successful SLA, the upcoming results season and the first sell-off of a state-owned enterprise – First Women Bank – are fueling positive sentiment,” he said.

“Talks of investment from Saudi Arabia and a current account surplus are also boosting 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 showed a surplus of $110 million in September, compared with a deficit of $325 million in the previous month and a deficit of $52 million in September 2024, State Bank of Pakistan data released on Monday showed.

However, in the first quarter of fiscal year 2026, the country’s current account deficit widened by 18% to $594 million. In September, the current account reported a surprising surplus that caught analysts and markets off guard as 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 upside surprise compared to industry expectations for a deficit in the range of $400 million to $500 million.

“The discrepancy likely stems from the timing and accounting adjustments between customs reporting and the balance of payments,” Hanif said. “This positive surprise could provide temporary support,” he added.