PSX reaches all-time intraday high above 86,500 points on positive SCO summit vibes

### KSE-100 Index Hits Record High Amid Earnings Season and SCO Summit Optimism  

The Pakistan Stock Exchange (PSX) hit a new all-time high on Wednesday as the benchmark KSE-100 index surged past 86,500 points, driven by strong corporate earnings and renewed investor interest in major stocks. Positive sentiment also stemmed from the ongoing Shanghai Cooperation Organisation (SCO) summit and optimism about political stability.

By 10:41 AM, the KSE-100 index had climbed 673 points, reaching 86,513 in intraday trade, compared to Tuesday’s close of 85,840 points.

### SCO Summit and Diplomatic Engagements Boost Market Confidence  

The two-day SCO Council of Heads of Government (CHG) meeting, which began Tuesday in Islamabad, has raised hopes of diplomatic progress. Investors were encouraged by the participation of Indian Foreign Minister Subrahmanyam Jaishankar, marking the first visit by a top Indian diplomat to Pakistan in nearly a decade, despite tense relations between the two countries.  

Khurram Schehzad, CEO of Alpha Beta Core, commented, "Hosting a major event like the SCO summit and bringing together regional leaders, particularly the Indian foreign minister’s arrival, likely strengthened investor confidence."

### Strong Earnings and Investor Optimism Fuel Market Rally  

The corporate earnings season is in full swing, with optimistic forecasts driving bullish sentiment and attracting investments in high-valuation stocks. The KSE-100 index had already gained 579 points on Tuesday, bolstered by a positive earnings outlook and enthusiasm surrounding the SCO summit.  

Saad Ali, Director of Research at Intermarket Securities, explained that investor sentiment was further strengthened by progress on a controversial government bill and a reduced likelihood of political protests in Islamabad. 

"The market has also absorbed the negative impact of changes to power purchase agreements (PPAs) with older independent power producers (IPPs)," Ali added.

### Economic Policy and Reduced Uncertainty Support Market Gains  

Ahsan Mehanti of Arif Habib Corporation said that reduced political uncertainty and economic benefits linked to the SCO summit have played a key role in the market’s bullish trend.  

"Declining bond yields and the government’s push to privatize state-owned enterprises have contributed to the positive momentum in the PSX," Mehanti noted.

The SCO, a regional security and political organization founded by China and Russia in 2001, represents one of the most high-profile events Pakistan has hosted in recent years. 

Tahir Abbas, Head of Investment Research at Arif Habib Ltd (AHL), noted that with financial results rolling in, investors are positioning themselves to maximize payouts, helping maintain market momentum. Abbas expects the central bank’s Monetary Policy Committee to lower interest rates by 200-250 basis points in its November meeting.

Abbas attributed the market rally to easing inflation, lower policy rates, improved corporate profitability, and generally favorable economic indicators. “At a price-to-earnings ratio of 4.2x, compared to its 6-year average of 6x, the market still has room for further gains,” he said.

### IMF Bailout Adds to Market Stability  

The PSX’s steady performance also reflects investor confidence following the approval of the IMF’s $7 billion bailout program aimed at stabilizing Pakistan’s economy. However, the IMF has emphasized that the program’s success depends on "sound policies and reforms" to strengthen macroeconomic stability and tackle structural challenges, along with sustained financial support from development and bilateral partners.

With positive earnings forecasts, diplomatic progress, and improving economic indicators, the KSE-100 index appears poised to sustain its upward trend in the coming weeks.