The Pakistan Stock Exchange (PSX) achieved another milestone on Friday, with the benchmark KSE-100 Index closing above the 154,000 mark for the first time in its history. The index surged by more than 1,600 points during the day, reflecting strong investor confidence fueled by positive economic indicators and encouraging corporate performance.
The KSE-100 maintained an upward trajectory throughout the trading session, touching an intra-day high of 154,511.31 points before settling at 154,277.19. This represented an increase of 1,611.47 points, or 1.06%, compared to the previous close.
Market analysts attributed the robust rally to a combination of domestic economic developments and upbeat investor sentiment following strong earnings releases. A major driver came from the Second Pakistan-China B2B Investment Conference held in Beijing, where companies from both countries signed Memoranda of Understanding worth $7 billion and Joint Ventures valued at $1.54 billion. These agreements spanned agriculture, electric vehicles, solar power, and steel, signaling fresh opportunities for economic collaboration.
According to Amreen Soorani, Head of Research at Al Meezan Investments, the stock market has climbed nearly 30% in the ongoing calendar year and has multiplied almost four times in the last two years. Despite this rapid growth, valuations remain attractive. She explained that the market’s Price-to-Earnings ratio stands close to 7x, still below the historical average of 8x, leaving room for further expansion.
Soorani added that expectations of 8–10% growth in corporate profitability, coupled with an attractive dividend yield of 8%, suggest the rally could sustain momentum. However, she cautioned that risks remain, including possible disruptions from climate-related events and broader macroeconomic challenges, which could impact corporate earnings and investor sentiment.
This performance followed Thursday’s session when the KSE-100 also closed at a record high of 152,665.72 points, reflecting consistent gains across the market.
The rally in Pakistan coincided with global optimism. Asian stock markets tracked Wall Street’s positive momentum, with the S&P 500 closing at a record high on Thursday. Investor confidence has been lifted by growing expectations that the US Federal Reserve will cut interest rates when it concludes its two-day policy meeting on September 17. Markets are currently pricing in a 25 basis point reduction, with forecasts suggesting a cumulative 60 basis points of cuts this year.
Asian benchmarks echoed this sentiment, with Japan’s Nikkei and Taiwan’s stock index each rising 0.8%, while Hong Kong’s Hang Seng and Chinese blue-chip shares advanced 0.4%. Australia’s market also gained 0.3%. The Nasdaq closed 1% higher on Thursday, approaching its record levels from mid-August.
Meanwhile, the Pakistani rupee extended its winning streak, appreciating 0.01% against the US dollar in Friday’s interbank session. The rupee closed at 281.65 per dollar, gaining Re0.02. This marked the currency’s 21st consecutive session of appreciation against the greenback, underscoring resilience in the forex market.
Trading activity on the PSX also reflected investor enthusiasm. The all-share index recorded volumes of 1,078.41 million, higher than the 954.33 million traded a day earlier. The value of shares exchanged stood at Rs59.95 billion, compared to Rs46.05 billion in the previous session.
Bank of Punjab led volumes with 146.09 million shares traded, followed by First National Equities at 55.75 million and Fauji Foods Limited at 50.94 million. On the gainers’ board, Sitara Chemical Industries rose by Rs79.77 to close at Rs877.47, while Siemens (Pakistan) Engineering added Rs50.17 to finish at Rs1,603.17. Among laggards, PIA Holding Company Limited-B declined by Rs834.67 to settle at Rs25,506.00, and Hoechst Pakistan Limited dropped by Rs96.79 to Rs4,004.48.
Out of 479 companies traded, 239 registered gains, 210 posted losses, and 30 remained unchanged.
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