Karachi, Pakistan — The Pakistan Stock Exchange (PSX) witnessed a strong rebound on Thursday as the benchmark KSE-100 Index surged by 881 points, closing at 116,901.13. The 0.76% gain comes on the back of renewed investor confidence following key macroeconomic developments and sector-specific rallies, particularly in cement and financial stocks.
The session opened on a cautious note, with early selling pressure dragging the index down to an intra-day low of 115,818.07. However, sentiment turned bullish in the latter half of trading, pushing the index to its intra-day and closing high of 116,901.13 — a remarkable recovery from the previous day’s sharp losses.
According to post-market commentary from Topline Securities, investor optimism was largely driven by the announcement of record-breaking remittance inflows. Pakistan posted a historic current account surplus of $1.2 billion in March, bringing the total surplus for the first nine months of FY25 to $1.9 billion. This significant improvement in external accounts has been perceived as a key stabilizing factor for the country’s economy, encouraging equity investors to return to the market.
Sectoral performance also played a vital role in Thursday’s upward momentum. A Rs25 per bag hike in cement prices sparked a rally in cement sector stocks, which significantly contributed to the index’s overall gains. The rally was led by Maple Leaf Cement Factory (MLCF), among others, reflecting investor confidence in improved margins and profitability within the sector.
In addition, several heavyweight blue-chip stocks were at the forefront of the rally. United Bank Limited (UBL), Pakistan State Oil (PSO), National Bank of Pakistan (NBP), Mari Petroleum (MARI), and MLCF were the top contributors, collectively adding 515 points to the day’s gains.
The sharp uptick comes just a day after the PSX witnessed a steep 755-point decline, highlighting the market’s sensitivity to economic signals and policy updates. Analysts note that while volatility remains a key feature of the market, strong macro fundamentals and positive sectoral news are helping maintain a bullish undertone.
Another development that buoyed investor sentiment was the confirmation of an extension to Kuwait’s oil credit facility for Pakistan. The announcement was made during a meeting between Kuwait’s Ambassador and Petroleum Minister Ali Pervaiz Malik. The two-year extension of the oil credit line is viewed as a boost for Pakistan’s external financing cushion and energy import security.
Market analysts remain cautiously optimistic about short-term performance. With improving current account numbers, foreign inflows, and favorable sector dynamics, the KSE-100 Index is expected to maintain upward momentum. However, intermittent profit-taking is anticipated, given the market’s recent fluctuations.
As the fiscal year progresses, market watchers will closely monitor macroeconomic indicators, including inflation, fiscal performance, and upcoming policy decisions, to gauge the sustainability of this upward trend.