KEY POINTS
- KSE‑100 Index rises nearly 4,700 points over the week, closing at 166,678.
- Oil & gas, banking, cement, and technology stocks lead strong sectoral gains.
- Institutional flows and broad market participation drive recovery.
- Global and regional markets support positive sentiment.
- Analysts caution volatility may persist; macro stability crucial for further gains.
ISLAMABAD: Bulls made a strong comeback on the Pakistani bourse during the week ending Friday, while analysts anticipate a cautiously positive outlook ahead, given the macroeconomic stability.
The Pakistan Stock Exchange (PSX) posted a robust recovery over the past five trading days as the KSE‑100 Index rebounded from early-week weakness to finish on a strong note.
Renewed institutional interest and broad-based sectoral buying supported the week’s gains, signalling growing investor confidence ahead of month-end and rollover activity. Overall, the index appreciated by nearly 2.9 per cent during the week under review.
Day-by-Day Flow
On Monday, the KSE‑100 opened around 161,984 points and closed near the same level after a subdued session with limited momentum.
Tuesday saw a dip to 161,692 points amid profit-taking and cautious sentiment. Wednesday brought a partial recovery, closing at 163,188, while Thursday witnessed further strength as the index rose to 165,373, reclaiming lost ground.
Friday delivered the week’s highlight: a sharp surge of 1,304 points lifted the KSE‑100 to 166,678, marking a 0.79 per cent gain of the session on robust volumes.
Drivers Behind the Week’s Rally
The rebound was fueled by broad-based buying across major sectors, including oil & gas exploration, banking, cement, and technology.
Investors rotated into value stocks that had corrected in recent weeks, bolstered by easing rollover-week concerns and expectations of favourable macroeconomic policies.
Trading volumes surged toward the week’s end, reflecting strong market participation beyond select blue-chip stocks.
Global and Regional Market Context
Global equity markets ended the week on a positive note, supported by optimism over potential U.S. interest rate cuts and easing macroeconomic pressures.
Asian markets, including Japan and South Korea, posted gains, while European indices also advanced. Analysts note that the benign global backdrop, combined with the recovery of regional equities, contributed to positive spillover effects for Pakistan.
Market Breadth, Volume, and Participation
The week saw a healthy breadth of activity, with institutional flows remaining strong, particularly in large-cap names. Mid-cap and some small-cap stocks also participated in the rally.
Overall weekly volumes were higher compared with the previous week, highlighting broad investor engagement.
Outlook and Risks for Next Week
With the KSE‑100 comfortably above 166,000 points — a key technical and psychological level — momentum appears favourable for further accumulation.
However, analysts caution that sustaining gains will depend on continued macroeconomic stability, strong corporate performance, and supportive policy signals.
Besides, external factors such as global commodity prices and geopolitical developments could influence market direction.
