The Pakistan Stock Exchange (PSX) sustained its remarkable upward momentum on Friday, marking a seventh consecutive record-breaking session. The benchmark KSE-100 index climbed 500.44 points to close at 168,990, just below the historic 169,000 mark. The PSX rally reflected growing investor optimism, driven by strong corporate performance and improving economic sentiment.
Market Touches New Highs Before Profit-Taking
The trading day began with enthusiasm as investors engaged in broad-based buying across key sectors. The index soared to an intraday high of 169,989 points, gaining 1,499 points, or 0.89 percent, in early trade. However, as the day progressed, traders turned cautious and booked profits ahead of the weekend, slightly trimming the day’s overall gains.
Despite the late pullback, the index maintained its record-setting pace and ended near the day’s high, demonstrating the market’s underlying strength. Analysts noted that investors continued to show confidence in blue-chip companies, even amid short-term volatility.
Major Contributors to Gains
Key players that boosted the KSE-100 index included Fauji Fertiliser Company, United Bank Limited, Hub Power Company, Systems Limited, and Adamjee Insurance. Collectively, these companies added around 980 points to the index’s performance.
The energy, technology, and insurance sectors attracted notable interest due to strong financial results and favorable government policies. Hub Power, in particular, continued to benefit from investor optimism surrounding energy prices and the government’s commitment to resolving circular debt issues.
Banking Sector Sees Temporary Pullback
While most sectors contributed positively, the banking sector faced mild pressure from profit-taking. Stocks such as Meezan Bank, MCB Bank, Habib Bank, and Bank Al-Habib collectively shed 577 points.
This sectoral correction followed several sessions of strong gains that had previously fueled the PSX’s rally. Analysts said the pullback was expected, describing it as a healthy sign of sector rotation rather than a shift in overall sentiment. Investors appeared to be diversifying their portfolios after weeks of strong banking performance.
Read: CoolKicks CEO Arrested in LAPD Raid Stolen Sneaker Allegations
Energy, Cement, and Steel Stocks in Focus
Energy stocks continued to perform well, buoyed by steady oil prices and policy clarity from the government on energy reforms. Hub Power Company remained one of the top gainers as investors viewed it as a safe bet in a volatile market environment.
Meanwhile, the cement sector remained resilient due to robust demand from ongoing infrastructure and construction projects. In contrast, steel stocks came under pressure amid concerns about rising raw material costs and possible disruptions in global supply chains.
Despite mixed performances across industries, the market’s overall direction remained firmly positive, suggesting that investors were focused on long-term growth rather than short-term fluctuations.
Robust Trading Activity
Trading activity on Friday reflected strong market participation. A total of 1.57 billion shares changed hands, with a turnover of Rs78.6 billion. The high liquidity underscored continued investor engagement despite the day’s profit-taking.
Cnergyico PK Limited led the volume chart with 21 million shares traded, signaling sustained investor interest in energy and industrial sectors. Other actively traded stocks included K-Electric, WorldCall Telecom, and Pak Refinery, each drawing significant volumes from both institutional and retail investors.
Analysts Cite Market Confidence
Ali Najib, Deputy Head of Trading at Arif Habib Limited, noted that aggressive early buying set the tone for another strong session. He explained that profit-taking in the final hours was “a natural correction after a week of record-breaking performance.” Najib added that the PSX’s consistent gains demonstrate investor confidence in Pakistan’s economic outlook, despite external uncertainties.
He emphasized that the market’s resilience reflects optimism over economic reforms and expectations of improving corporate earnings in the coming quarters.
Economic Backdrop and IMF Review
The PSX rally coincided with the second review of Pakistan’s $7 billion Extended Fund Facility (EFF) with the International Monetary Fund (IMF). The Fund expressed cautious optimism about the country’s economic trajectory, highlighting progress in fiscal consolidation and structural reforms.
However, the IMF also reiterated concerns over Pakistan’s external vulnerabilities, particularly its balance of payments and high external debt. Inflationary pressures remain elevated, and global economic conditions continue to pose challenges.
The IMF stressed that sustained reforms and prudent fiscal management are crucial for long-term economic stability. Analysts believe that continued engagement with the IMF will help anchor investor sentiment and maintain the market’s positive direction.
Investors Look Ahead
Despite the near-term volatility caused by profit-taking, analysts forecast that the PSX’s bullish trend will likely continue in the coming sessions. Investor optimism is expected to remain strong amid expectations of improving macroeconomic indicators and better corporate results.
As Pakistan’s economy shows gradual signs of recovery, the stock market’s historic performance signals renewed confidence in financial stability and economic governance. The combination of structural reforms, a stabilizing currency, and consistent investor participation continues to drive momentum across the market.
With the KSE-100 index now just shy of the 169,000 milestone, investors are watching closely to see whether the momentum can push the market to another all-time high next week — solidifying PSX’s status as one of the most dynamic emerging markets in the region.
