PSX extends gains over external debt clarity

The bullish trend continued at the Pakistan Stock Exchange (PSX) on Tuesday as the KSE-100 index advanced nearly 800 points in a rally reflecting a stable policy rate and government’s ability to meet external debt obligations. Notably, the index reclaimed the 156,000-point level while building on Monday’s successful defence of a key support zone.

Pakistan has to repay external debt worth $26.1 billion in FY26 comprising principal loans of $22 billion and interest costs of $4.1 billion. So far, $3.5 billion worth of obligations have been met through $1.5 billion in repayments and $2 billion in rollovers, leaving $22.5 billion, which is due to be repaid over the remaining period of the current fiscal year.

Adding to the momentum, the State Bank of Pakistan (SBP) governor reiterated that all external obligations, including a $500 million bond maturity, would be met on time without straining the foreign reserves.

KTrade Securities, in its market wrap, mentioned that the PSX closed another session on a positive note as the benchmark KSE-100 index gained 796 points (+0.51%) to settle at 156,181. The rally was supported by strong performances in stocks of Meezan Bank, TRG Pakistan, Oil and Gas Development Company, Hub Power, Pakistan State Oil, Mari Energies and The Bank of Punjab.

The report largely attributed the index’s growth to the SBP’s decision to maintain policy rate at 11%, which was welcomed by the market as a prudent and stabilising measure. 

Trading activity remained robust, with total volumes reaching 1,356 million shares. The resilience at the PSX reflects investor confidence in Pakistan’s long-term economic prospects, supported by improving corporate earnings.

However, some short-term consolidation is likely in the coming sessions as the market prepares for futures contract rollover next week, KTrade predicted. Arif Habib Limited remarked that the PSX regained the 156,000 level following a successful test of support on Monday.

Some 67 shares rose while 31 fell, where Meezan Bank (+2.64%), TRG Pakistan (+10%) and Oil and Gas Development Company (+1.37%) contributed the most to index gains. On the flip side, Fauji Fertiliser (-0.79%), MCB Bank (-0.5%) and Aaskari Bank (-1.85%) were the biggest drags, it said.

AHL mentioned that the government’s external debt repayments for FY26 stood at $26.1 billion including $4.1 billion worth of interest and $22 billion in principal amount. Of the total, $3.5 billion has been managed – $1.5 billion repaid while $2 billion rolled over. Around $22.5 billion is due in the remaining months of the current fiscal year.

Additionally, the SBP governor expressed confidence that all repayments would be met on time without straining reserves and confirmed that the $500 million bond maturity would be repaid without impacting the foreign currency holdings. AHL concluded that the KSE-100 index remains on track to hit 158k in the near term.

Overall trading volumes jumped to 1.4 billion shares versus Monday’s tally of 857.6 million. Traded value was recorded at Rs43.3 billion.

Shares of 483 companies were traded. Of these, 280 stocks rose, 178 fell and 25 remained unchanged. WorldCall Telecom was the volume leader with trading in 125.7 million shares, gaining Rs0.09 to close at Rs1.66.