KARACHI, Jan. 21 -- The Pakistan Stock Exchange (PSX) surged to a new record on Tuesday, with the benchmark KSE-100 index crossing the 188,000-point mark for the first time, as investors bet on a potential interest rate cut at the upcoming monetary policy meeting.

Read More: PSX gains 860 points to stay above at 188,000 level

The index closed at 188,621.78 points, up 860.09 points or 0.46 percent, after touching an intraday high of 188,958.38 and a low of 187,192.02. Analysts said broad-based buying by local mutual funds drove the rally, despite a widening current account deficit and a decline in foreign investment.

Engro Holdings, Pakistan Petroleum, Sazgar Engineering Works, Oil and Gas Development Company, and PSO contributed 661 po...