Key Points
- KSE-100 surges 4,220 points (2.67%) to close at 162,257
- Market capitalisation climbs Rs500bn (2.7%) to Rs18.9 trillion
- Weekly turnover up 15%, averaging 1.67bn shares worth Rs60bn
- Circular debt measures and U.S. visit boost investor confidence
ISLAMABAD: The Pakistan Stock Exchange (PSX) ended the last week with a powerful rally, scaling new all-time highs as reforms in the energy sector and renewed diplomatic engagement lifted investor sentiment.
Analysts said optimism was fueled by government steps to resolve the circular debt crisis, coupled with improved external indicators. Pakistan’s delegation under Prime Minister Shehbaz Sharif, in the limelight at the 80th UNGA, sent encouraging signals to the investor confidence
According to official PSX data, the KSE-100 Index gained 4,220 points, or 2.67 per cent over the preceding week to settle at 162,257, marking its highest close on record. The All-Share Index rose 3,950 points (4.06%) to 101,190, while the KSE-30 advanced 1,290 points (2.67%) to 49,442. Market capitalisation expanded by Rs 500 billion, or 2.7 per cent, to Rs 18.9 trillion, compared with Rs 18.4 trillion last week.
Turnover also improved notably. The PSX weekly report showed an average daily volume of 1.67 billion shares, up 15 per cent from 1.45 billion last week, with a traded value of Rs 60 billion compared with Rs 55 billion during the earlier week. Futures contracts added another 2.2 billion shares, reflecting heightened speculative interest.
Daily performance drives weekly momentum
The week began cautiously on Monday, with the index hovering in a narrow band as investors awaited clarity on fiscal signals. The KSE-100 closed marginally higher, adding less than 0.2 per cent, supported by selective buying in banking stocks. On Tuesday, optimism surfaced after reports of official progress in addressing circular debt, with the index advancing around 0.5 per cent on strong volumes.
By Wednesday, sentiment had strengthened further, pushing the KSE-100 up another 0.7 per cent, with activity concentrated in energy and cement stocks. On Thursday, momentum accelerated after the government and a consortium of 18 banks signed a Rs1.225 trillion financing facility, seen as a game-changer for power sector liquidity. The index rose nearly 1 per cent, closing at 159,280.09 points.
Friday capped the week with a breakout, as investors cheered both the financing deal and positive reports about Prime Minister Shehbaz Sharif’s meeting with U.S. President Donald Trump. The KSE-100 gained 1.87 per cent, delivering the bulk of the week’s advance in a single session.
Most active stocks and sectoral flows
Among the most heavily traded names were K-Electric Ltd., WorldCall Telecom, Cnergyico PK Ltd., Bank of Punjab and Arif Habib Corporation during the week, reflecting speculative flows into energy and telecom alongside renewed institutional buying in financials. Analysts told Business Recorder that the liquidity support deal for power companies directly boosted confidence in utilities and energy shares. At the same time, Dawn reported that diplomatic outreach in Washington and New York was viewed by investors as a potential precursor to new U.S. investment, further underpinning the rally.
Outlook
Market strategists caution that while the rally has extended the index into uncharted territory, sustainability will depend on policy continuity, external financing flows, and stability in the rupee. A senior broker told The Express Tribune that near-term risks such as inflationary pressures and potential global oil price shocks could test the durability of sentiment. Nonetheless, with fresh liquidity entering the equities market and reforms gaining traction, the PSX appears well-positioned to carry momentum into the coming week if macroeconomic indicators and the ongoing IMF review signal in favourable terms.
