Key Points
- Banking, fertiliser and energy stocks lead broad-based gains
- Market resilience stands out amid mixed performance across Asian equities
- Global cues remain cautious as investors track US rates and Middle East risks
ISLAMABAD: Pakistan’s stock market closed last week with strong gains, extending its upward momentum as steady buying interest lifted the benchmark index, in comparison with cautious regional and international markets.
Institutional and foreign support encouraged the small local investors to jump on the bullish bandwagon and take fresh positions in the blue-chip stocks.
Positive developments in the geopolitical arena, particularly the prominent performance of Pakistan’s delegation at the World Economic Forum in Davos, bolstered bullish sentiment last week.
Weekly performance at a glance
Official figures from the Pakistan Stock Exchange data showed the benchmark KSE-100 Index gained 4,068 points, or 2.2 per cent week-on-week, closing at 189,166.83 points, compared with 185,098.83 points at the end of the previous week.
The index remained firmly in positive territory through most sessions, reflecting sustained investor confidence.
Sectoral drivers
Market participants observed that banking, fertiliser, cement and energy stocks were the main drivers of the rally.
The heavyweight scrips continued to attract consistent interest from both institutional and retail.
The broad-based nature of gains suggested improving sentiment beyond select blue-chip names.
Liquidity and investor mood
PSX data reflected healthy trading volumes during the week, pointing to continued participation from local investors.
Market commentators attributed the upbeat mood to expectations of policy stability, easing inflationary pressures and improved corporate earnings outlook.
Regional and international market context
In contrast to the PSX’s strong performance, regional Asian markets remained mixed, with some indices weighed down by concerns over global interest rates and slowing growth in major economies.
Internationally, investors stayed cautious amid uncertainty over US monetary policy and ongoing geopolitical tensions in the Middle East, which kept global risk appetite in check.
Outlook
Analysts said Pakistan’s equity market has shown relative resilience in a challenging global environment.
They cautioned that short-term consolidation could emerge, with future direction likely to depend on macroeconomic signals, policy developments and trends in the international markets.
