The Pakistan Stock Exchange (PSX) carried forward its impressive upward momentum on Friday, with the benchmark KSE-100 index closing at yet another historic high above the 131,000 mark. This milestone marks the sixth straight session of gains, underscoring renewed investor confidence in Pakistan’s economic outlook.
According to figures released by Topline Securities Ltd, the KSE-100 index stayed largely in positive territory throughout the day’s trading. It climbed by an additional 1,262.41 points, or 0.97 percent, settling at an unprecedented 131,949.07. This steady ascent was underpinned by substantial institutional buying, reflecting increased allocations into equity funds, as evidenced by data from the National Clearing Company.
Much of the index’s strength came from heavyweight stocks in the banking and technology spaces. United Bank Ltd, Habib Bank, Systems Ltd, Bank Al Habib, MCB Bank, National Bank, and Meezan Bank were among the primary drivers of the rally, jointly contributing 1,289 points to the index’s climb. The banking sector in particular benefitted from growing market bets on monetary easing, which could enhance profitability in the quarters ahead.
Ahsan Mehanti, director at Arif Habib Corporation, commented on the surge, pointing to a combination of favorable developments that have strengthened market sentiment. He highlighted the rupee’s continued recovery alongside the State Bank of Pakistan’s foreign exchange reserves, which recently reached $19.87 billion. These factors, coupled with improved inflows and a relatively calm political environment, have encouraged both local and foreign investors to scale up equity exposure.
Adding to the optimistic landscape, Mehanti noted that falling yields on government bonds are pushing investors toward equities, especially with major earnings announcements on the horizon. He believes this mix of supportive macroeconomic signals and investor speculation ahead of the upcoming results season has been pivotal in sustaining the PSX’s momentum.
Echoing these views, Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the rally as being closely tied to broader improvements in Pakistan’s economic indicators. He pointed to higher reserves, a stable currency, and signs of moderating inflation as key elements fueling investor enthusiasm. Najib also emphasized that institutional buying has been particularly noticeable in the banking and energy sectors, driven by expectations of lower interest rates and optimism surrounding corporate profitability.
The market’s performance over the past few sessions signals a notable shift in investor confidence, which had been battered in recent years by persistent economic and political headwinds. Analysts suggest that if these macro trends hold, the PSX may continue to test new levels, attracting further domestic and foreign participation.
However, they also caution that sustainability will depend on the continuation of structural economic improvements, policy consistency, and global market stability. For now, though, the mood on the trading floor is decidedly upbeat, with Pakistan’s equity market offering a rare bright spot amid a challenging global financial backdrop.