The Pakistan Stock Exchange (PSX) continued its winning streak for a fourth straight session on Friday, with the benchmark KSE-100 index closing above the 185,000-point level as improving geopolitical conditions and stronger economic sentiment supported the market.
The index rose 0.5%, or 930 points, to close at 185,464, moving closer to its all-time high of more than 189,000 reached on Janurary 23.
According to Topline Securities, investor confidence remained strong due to lower international oil prices, which are expected to ease pressure on Pakistan’s external account.
The gains were mainly led by United Bank Ltd., Oil and Gas Development Company, Fauji Fertilizer Company, Mari Energies and Pakistan Petroleum Ltd. These stocks together added around 611 points to the index. The exploration and production sector saw the highest trading value. OGDC recorded transactions worth Rs3.08 billion, followed by Mari Energies at Rs2.43 billion and Pakistan Petroleum at Rs1.81 billion.
Lower oil prices and expectations of interest rate cuts continued to support investor confidence.
However, overall market activity declined. Trading volume fell 18% to 815 million shares, while trading value dropped 23.6% to Rs42.6 billion.
Ali Najib, deputy head of trading at Arif Habib Ltd., said the market saw mixed activity, with short-term profit-taking limiting gains, while selective buying in banking and energy stocks kept the index in positive territory.
He added that investors remained cautious ahead of the weekend, although optimism about the economic outlook continued to support market sentiment.
On the diplomatic front, Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir led a high-level delegation to Tehran to attend the funeral of Iran’s late supreme leader.
Analysts expect easing inflation, lower oil prices and rising expectations of monetary easing to continue supporting equities, with the index likely to test new record highs in the coming sessions. However, they warned that geopolitical developments and the State Bank of Pakistan’s upcoming monetary policy decision will remain key drivers of market direction in the near term.
