Bulls took control of the trading floor at the Pakistan Stock Exchange (PSX) on Friday, with the benchmark KSE-100 Index surging over 2,400 points and breaking the 161,000 barrier for the first time in history.
According to the PSX website, the market opened the session on a positive note, driven by recent positive economic and geopolitical developments.
By 11:00 AM, the KSE-100 Index reached 161,745 level, with an increase of 2,465 points. Broad-based buying was observed across key sectors, including cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries.
High-weightage stocks like ARL, HUBCO, MARI, OGDC, PPL, POL, SNGPL, and PSO were among the notable performers in the green.
Analysts attributed the surge to the improving economic outlook and Pakistan’s geopolitical positioning. On Wednesday, the government signed a “landmark” financing agreement of Rs1.225 trillion with a consortium of 18 banks to address the country’s power sector circular debt, which currently stands at around Rs1.7 trillion.
“This achievement reflects the strength of teamwork across institutions united to address one of the most chronic challenges of Pakistan’s energy sector,” the finance ministry said.
In related developments, Prime Minister Shehbaz Sharif held talks with U.S. President Donald Trump at the White House on Thursday. The two leaders discussed the Middle East situation, with the Prime Minister praising Trump’s efforts in trying to bring peace to Gaza and the West Bank, especially following his initiative to bring together key Muslim world leaders for peace discussions earlier this week.
Further supporting the rally, analysts highlighted that improved fiscal and external balances under the IMF program have helped strengthen confidence in Pakistan’s macroeconomic stability. “Corporate earnings prospects remain upbeat, particularly in cyclical sectors. Sentiment is further buoyed by strong liquidity and momentum,” they added.
The momentum followed through from Thursday’s positive trading session, where optimism over government actions to tackle circular debt propelled the KSE-100 Index to settle at 159,280.09, up 1,043.42 points or 0.66%.
On the global front, shares in Asia fell on Friday after U.S. President Donald Trump announced new tariffs, including 100% duties on imported branded drugs, 25% tariffs on heavy-duty trucks, and 50% tariffs on kitchen cabinets.
As a result, pharmaceutical stocks across Asia took a hit, with Japan’s Topix pharmaceutical index dropping 1%, and Hong Kong’s innovative drug index sliding 2.8%.
