The Pakistan Stock Exchange (PSX) ended Friday’s trading session on a positive note, with the benchmark KSE-100 index rising by 258 points to settle at 149,493. The upward movement reflected resilience in the market, though volatility remained a defining feature as investors actively reshuffled positions in response to mixed economic signals and corporate expectations.
Trading volumes fell noticeably, with 336 million shares changing hands compared to 426 million in the previous session, underscoring a cautious approach among participants. While the index managed to close higher, the session highlighted investor uncertainty as market watchers balanced optimism in key sectors with broader concerns about economic stability and global market conditions.
The rally was primarily fueled by strength in Commercial Banks, Oil and Gas Exploration Companies, and Fertiliser stocks, which together contributed 248 points to the index. Sectoral performance underscored the importance of banking in driving market direction, as banks alone added 106 points, followed by Exploration and Production at 73 points, and Fertiliser at 69 points.
On the flip side, Pharmaceuticals weighed heavily on the index, pulling it down by 110 points as investor sentiment in the sector remained subdued. The divergence in performance between leading and lagging sectors highlighted the fragmented nature of market momentum, with gains in heavyweight industries balancing out sector-specific weaknesses.
Among individual stocks, Fauji Fertilizer Company (FFC) emerged as the standout performer, contributing 90.74 points to the index. The National Bank of Pakistan (NBP) also performed strongly, adding 59.78 points, while Askari Bank Limited (AKBL) contributed 53.61 points. These gains helped offset the negative impact of key laggards, including The Searle Company Limited (SEARL), which dragged the index down by 102.39 points, Meezan Bank Limited (MEBL) with a decline of 65.37 points, and Engro Fertilizers Holdings (ENGROH) which shed 49.58 points.
In terms of broader indices, the KMI-30 closed at 211,667, reflecting a marginal dip of 0.25%, while the KSE-All Share Index inched up 0.08% to close at 91,988. Currency markets remained relatively stable, with the Pakistani rupee holding firm against the US dollar. The USD/PKR exchange rate slipped slightly by 0.01% to close at 281.905, providing some reassurance to investors keeping a close watch on external account pressures.
Analysts noted that despite the day’s positive close, caution still dominated market sentiment. The reduction in trading volumes indicated that investors were not prepared to take large positions, instead adopting a wait-and-see approach ahead of upcoming corporate earnings announcements and macroeconomic policy signals. With inflationary pressures persisting and monetary policy decisions looming, participants appeared inclined to book profits in select counters while holding back on aggressive buying.
Market strategists also pointed out that the performance of the banking sector highlighted confidence in its role as a stabilizer for the broader market, while continued interest in the fertiliser industry reflected expectations of stable demand. Meanwhile, the underperformance of pharmaceuticals underscored the challenges faced by specific industries in navigating cost pressures and regulatory uncertainties.
Looking ahead, traders believe that near-term momentum will likely remain choppy, influenced by a mix of domestic earnings season developments, government policy directions, and global economic signals. With investor attention firmly on sectors that provide consistency and resilience, banks and fertilisers are expected to remain key drivers of sentiment in the sessions ahead.
The PSX’s ability to sustain gains amid volatility suggests underlying resilience in Pakistan’s capital markets, but the need for greater clarity on economic fundamentals continues to weigh on investor confidence. Market watchers maintain that diversification across sectors and cautious positioning will remain central to navigating the current environment.