ISLAMABAD: Pakistan’s capital market continued record-making forward thrust, riding an upbeat sentiment for a quantum jump of over 6 per cent to a new historical peak on the benchmark index, invigorating investor confidence during the week ended Friday (October 3).
Trading activity on the local bourse strengthened the fundamentals of key sectors, backed by fresh buying interest from institutional and foreign investors.
Prevalent bulls were riding expectations of policy continuity, stable currency conditions, and improving risk appetite supported by both domestic liquidity and a firmer global backdrop.
The Pakistan Stock Exchange closed the week on a strong note, as investors pushed the benchmark KSE-100 Index above the 168,900-point mark, marking a solid weekly advance of more than 6 percent.
Buoyed by robust volumes and renewed investor confidence, the market extended its upward streak for the second consecutive week, setting new all-time highs on multiple sessions. KSE-100 Index gained 9,709.98 points, closing at 168,990.07 compared with 159,280.09 the previous Friday.
Turnover expanded sharply, while traded value climbed significantly — with Friday alone posting 1.57 billion shares worth Rs 78.67 billion, according to the PSX data summary.
The All-Share Index also mirrored the uptrend, reflecting broad-based participation even as activity remained tilted toward large-cap names.
From a numbers standpoint, the KSE-100 tested an intraday high of 169,988.62 and a low of 168,613.41 on the final trading day. Market breadth on Friday showed 201 advancers, 254 decliners, and 30 unchanged stocks, underscoring mixed sentiment amid profit-taking in select sectors.
The Week in Review
The market began the week on a strong footing, fuelled by banking and energy plays as participants shifted out of defensive assets into cyclical counters.
By midweek, the rally broadened to fertiliser and industrial names, driving consistent gains. Despite intermittent profit-taking in financials, the overall tone stayed firm, supported by local liquidity and a stabilising macro-outlook.
Towards the latter half of the week, profit-booking became more measured while institutional flows maintained depth. The overall market movement underlined strong domestic participation alongside a cautious but steady appetite from foreign investors.
As the index neared the 170,000 milestone, traders opted for selective rotation rather than aggressive chase buying, keeping momentum intact into the weekend.
Drivers Behind the Rally
Ample liquidity from mutual funds and proprietary desks underpinned the week’s strength. The IMF’s positive review tone on Pakistan’s ongoing programme reassured investors about policy continuity.
Heavyweights such as Fauji Fertiliser, Hub Power, and United Bank Limited were among the key index contributors, according to PSX intraday data.
Analysts quoted by Dawn observe that narrowing yield differentials between equities and fixed-income assets encouraged fund managers to shift toward the stock market, expecting sustained corporate earnings momentum.
Internationally, Reuters noted that a softer dollar and growing expectations of eventual U.S. rate cuts helped lift sentiment across emerging markets, with Pakistan benefiting from the global equity rebound.
Business Recorder also reported that local investors welcomed signs of foreign portfolio inflows into key energy and financial counters.
Meanwhile, Bloomberg highlighted an improved risk appetite in frontier and emerging markets amid easing volatility in U.S. Treasuries, a trend that indirectly supported PSX valuations.
Risks and Outlook
Despite strong performance, analysts warn of narrow leadership, with gains concentrated in a few sectors. Inflation volatility, fiscal slippages, or delays in external inflows could trigger corrections.
Technically, support lies between 163,500 and 166,000, while resistance stands near 170,000 – 171,500. Sustained foreign interest and sectoral breadth are essential for a clean breakout above the psychological 170,000 barrier.
For now, momentum remains constructive — yet investors may find reason for caution as valuations stretch and the market awaits new macro triggers. A technical correction, triggered by profit-taking, could surprise small investors leaning on the bullish trend.
