Cement, fertiliser power PSX to new peak

Despite a slump in exports and the devastating impact of recent floods, the Pakistan Stock Exchange (PSX) continued its bullish trend, marking the fourth consecutive session of gains. The benchmark KSE-100 index surged past the 152,000-point barrier, reaching an all-time high, buoyed by strong performances from the cement and fertiliser sectors. Ahsan Mehanti of Arif Habib Corporation attributed the market’s record close to the optimistic GDP growth projections by the State Bank of Pakistan (SBP), ranging between 3.25pc and 4.25pc for FY26. Additionally, speculation surrounding trade relations under CPEC 2.0 and the Pak-China Free Trade Agreement, along with stronger-than-expected sectoral data, contributed to the bullish momentum. Pakistan’s merchandise exports, however, remained in negative territory in August, raising concerns among policymakers about diminishing global demand and the country’s declining competitiveness. This marks the fourth contraction in exports over the past five months, with only a brief respite in July due to marginal growth.