KEY POINTS
- KSE-100 index rallies 3.9%, closes at record 154,277
- Institutional flows buoy banks, cement, and energy stocks
- Volume leaders include OGDC, PPL, Engro, HBL, Lucky Cement
- Brokers cite rupee stability and flood recovery optimism
ISLAMABAD: The Pakistan Stock Exchange (PSX) closed another record-setting week on Friday, with the KSE-100 index surging 3.9% to finish at 154,277 points’ new peak.
The buying spree, stretching across all five sessions, was powered by sustained institutional buying and broad sectoral gains, underlining what analysts describe as one of the most remarkable bullish spells in the bourse’s history.
The week opened with the benchmark reclaiming the 150,000 level on Monday and steadily advancing in the following sessions. Midweek, strong activity in cement, fertiliser, and banking counters drove the index to new intra-day highs.
At the same time, upbeat August sales data in the oil and cement sectors further boosted sentiment on Thursday. By Friday, the rally culminated in a 1.06% single-day jump, lifting the index past the 154,000 milestone for the first time.
Trading was led by blue-chip names, with OGDC, PPL, Engro, and HBL dominating volumes, alongside cement majors Lucky Cement and DG Khan Cement.
This mix of energy and construction-linked stocks reflected market expectations of higher fuel consumption and reconstruction-driven demand in the months ahead.
Explaining the momentum, Ahsan Mehanti, chief executive at Arif Habib Corporation, told Dawn that investors drew confidence from “surging forex reserves, soft inflation, increasing oil consumption, and expectations of government spending on flood reconstruction.”
Analysts at Topline Securities, in their review quoted by The Express Tribune, observed that the rally was “firmly underpinned by rupee stability and consistent institutional flows,” which gave investors greater comfort in heavyweight sectors.
The current rally has been described by market observers as unprecedented in length and consistency, with the KSE-100 breaking successive records over recent months.
Brokers attribute the sustained upward run to a combination of improving macroeconomic indicators, relatively stable interest rates, and optimism over corporate profitability.
They also highlight the role of remittance inflows and improved foreign exchange buffers, which have reduced uncertainty for investors who had been rattled by volatility in past years.
Regionally, Pakistan’s stock market continues to stand out for both the volume and capitalisation growth.
While South Asian peers such as India’s Sensex and Bangladesh’s DSEX showed mixed movements amid global commodity concerns and currency pressures, the PSX has maintained a steady upward trajectory.
On the Global stage, caution remains visible in developed markets, where the U.S. and European bourses fluctuated over interest rate expectations and energy price trends, along with the job data disappointments.
Analysts said the relative disconnect of the PSX from these external swings has amplified local investor focus on domestic fundamentals.
Sector-wise, cement has been the standout performer, supported by expectations of large-scale public and private construction activity once the monsoon season subsides.
Banks also attracted strong flows, with investors betting on stable earnings amid resilient loan demand. The oil and gas sector gained on projections of increased consumption, further supported by firm international energy prices.
Looking to the week starting September 8, brokerage houses remain optimistic but warn against complacency and technical market corrections.
Market watchers expect continued bullish momentum, provided the Pakistani rupee maintains stability against the US dollar and corporate earnings are delivered as anticipated. Policy clarity on post-flood reconstruction spending is seen as a key trigger for sustaining sentiment.
