The Pakistan Stock Exchange (PSX) ended the week on a historic high as the KSE-100 index surged past the 162,000-point threshold, setting a new record close at 162,257. The index rose by 2,977 points, or 1.87 percent, on Friday, fueled by renewed investor optimism over improving political and economic relations with the United States.
The breakthrough above the psychological 160,000 mark was seen as a defining moment for market confidence. The surge followed a significant diplomatic development, where US President Donald Trump praised Pakistan’s civil-military leadership during a landmark meeting. This gesture was widely viewed as a diplomatic boost, lifting Pakistan’s global image and strengthening perceptions of geopolitical stability.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the combination of improved political ties and economic sentiment amplified the market’s bullish momentum. Investors saw the development as a sign of stability, which translated into aggressive buying across multiple sectors.
The ongoing review of the International Monetary Fund’s (IMF) $7 billion Extended Fund Facility (EFF) also played a crucial role in supporting the rally. The IMF mission, which began its evaluation in Karachi and Islamabad, is assessing Pakistan’s program performance, with authorities seeking leeway regarding flood-related challenges and governance reforms. Market watchers believe a favorable outcome from the IMF review would further bolster investor confidence and sustain the rally.
Trading activity showed remarkable strength, with volumes increasing by 2.47 percent to 1.7 billion shares. The traded value climbed nearly 28 percent, reaching Rs70.7 billion. The telecom sector remained the most vibrant, led by WorldCall Telecom, which recorded an exceptional 450 million shares traded, underscoring strong retail investor participation.
Topline Securities attributed the record-breaking rally to improving macroeconomic fundamentals and investor optimism about the country’s financial future.
The cement sector emerged as one of the key contributors to the index’s rise. Companies such as Lucky Cement, Bestway Cement, and Fauji Cement collectively delivered a robust 52 percent year-on-year profit growth in FY25, totaling Rs123 billion. The sector benefited from resilient retention prices and improved energy efficiency, further attracting investor interest.
Blue-chip stocks also provided significant support to the market’s upward trajectory. Fauji Fertiliser, United Bank, Engro Holdings, Habib Bank, and Mari Energies alone contributed 1,424 points to the index. This wave of positive performance reflected both sector-specific growth and investor confidence in Pakistan’s leading corporates.
Market analysts predict the bullish momentum is unlikely to slow down in the near term. With supportive macroeconomic signals, political goodwill, and sector-wide growth, the KSE-100 index is expected to maintain its upward march. Some analysts are already eyeing the 165,000 level as the next milestone, provided economic and diplomatic stability continues.
The PSX’s record-breaking performance underscores the resilience of Pakistan’s equity market and its ability to respond dynamically to both domestic and global developments. For investors, the latest rally signals not just optimism but a renewed sense of trust in the long-term growth potential of Pakistan’s economy.
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