The Pakistan Stock Exchange (PSX) opened the trading week with a sharp rise, pushing the KSE-100 index to a new all-time high of 118,735.09 points during intraday trading, following which the market faced a slight pullback, with the index falling as low as 116,300.17 points.
At midday, the KSE-100 index stood at -896.05 points or 116,745.03 points, marking a decline of 0.76% during the day.
Despite this setback, trading activity remained strong, with 134.7 million shares exchanged, equivalent to a turnover value of approximately PKR 9.74 billion.
The PSX’s previous close was recorded at 117,586.98 points, reflecting a modest loss in the current session, following an otherwise positive start to the week.
Earlier, the Pakistan Stock Exchange (PSX) experienced a strong bullish week, with the KSE-100 index hitting a record high of 117,587 points, marking a weekly gain (WoW) of 5.6%.
This positive momentum was driven by improving investor sentiment, fueled by favorable macroeconomic indicators, such as the decline in inflation in December 2024 to 4.1%, the lowest in more than six years, and the strong performance of the sector, especially banks, fertilizers and exploration and production companies.
Average daily trading volume increased by 31% WoW, reaching 1.045 million shares. However, there were concerns over the trade deficit rising to $2.4 billion and a fiscal deficit of Rs 386 billion.
Despite these challenges, a new five-year economic plan, “Uraan Pakistan”, aimed at sustainable economic growth, bolstered investor confidence.
Analysts project continued growth through 2025, with expectations that the KSE-100 index will reach 160,000 points if political and economic reforms stabilize.
The PSX experienced volatility throughout the week, including notable gains on Monday (+3.5%) and Wednesday (+1,881 points).
On the last trading day, the market surpassed 117,500 points, buoyed by strong earnings projections and an expected cut in the SBP’s policy rate.
The week closed with 6,236 points gained, making the PSX the best performing market in the world in terms of US dollar returns.
Sectoral Contributions:
- Banks: +13,847 points
- Fertilizers: +11,169 points
- Exploration and Production (E&P): +10,012 points
Inflation data, the trade balance and government measures contributed to the bull market. Analysts predict continued market growth, especially if economic reforms and political stability are maintained.
