The Pakistan Stock Exchange (PSX) witnessed a powerful bullish rally on Friday, as renewed investor optimism led to a massive surge of nearly 2,700 points in the KSE-100 Index during the second half of the trading session. This significant upward movement marked one of the strongest single-day performances in recent weeks, driven by easing geopolitical concerns, expectations of favorable inflation data, and positive cues from global markets.
KSE-100 Index Posts Strong Gains
At 3:20 PM, the benchmark KSE-100 Index stood at 114,003.65 points, up by 2,677.08 points or approximately 2.4% from the previous session. The index even touched an intra-day high of 114,546.87, highlighting the intensity of the buying momentum.
According to market analysts, the across-the-board buying in major sectors indicated growing market confidence, particularly following signs of possible de-escalation between Pakistan and India after recent tensions.
Key Sectors in Green
The bullish sentiment was reflected in strong performances from several index-heavy sectors, including:
- Automobile Assemblers
- Cement and Construction
- Chemicals and Fertilizers
- Commercial Banks
- Oil & Gas Exploration Companies (OGDC, PPL, MARI)
- Oil Marketing Companies (OMCs) like PSO and PRL
- Power Generation (HUBCO)
- Refineries (ARL, PRL)
Heavyweight banking stocks such as HBL and NBP also traded positively, contributing significantly to the index’s sharp rise.
Factors Fueling the Rally
According to Sana Tawfik, Head of Research at Arif Habib Limited (AHL), multiple domestic and international factors fueled the positive sentiment at the PSX.
The expectations for a decline in April inflation, anticipated to hover around 0.45%, combined with hopes of a rate cut in the upcoming Monetary Policy Committee (MPC) meeting, have supported market sentiment, she told Business Recorder.
Furthermore, US Secretary of State Marco Rubio’s recent statement urging India and Pakistan to work towards peace has helped alleviate concerns about regional conflict. This followed a spike in cross-border tensions last month that had severely impacted investor confidence, causing the KSE-100 to shed over 6,480 points in April alone.
Holiday Effect and Global Market Tailwinds
The market’s rebound was also supported by the closure of PSX on Thursday due to Labour Day, giving investors time to digest recent developments and re-enter the market with renewed confidence.
Globally, Asian stock markets and US futures saw upward momentum on Friday, contributing to the improved risk appetite among investors. Hopes for renewed trade negotiations between the US and China also played a role in lifting regional market sentiment.
The Chinese commerce ministry stated that Beijing remains open to talks, and that the US has shown willingness to negotiate tariffs. This news reversed earlier declines in US stock futures, following Apple’s cautious outlook and Amazon’s earnings miss.
As a result:
- S&P 500 futures rose 0.6%
- Nasdaq futures climbed 0.3%
- Japan’s Nikkei index gained 1%, aided by a weaker yen
- Taiwan’s stock market surged 2%
- MSCI Asia-Pacific index (excluding Japan) added 0.4%
Commodities Update
On the commodities front:
- Gold prices eased to $3,234.9 per ounce, set for their weakest week in two months as safe-haven demand diminished.
- Oil prices surged after US President Donald Trump threatened secondary sanctions on Iran.
- Brent crude rose 0.56%
- WTI crude gained 0.6%
A Reassuring Sign for PSX Investors
Friday’s rally offered a much-needed boost to investor sentiment at the Pakistan Stock Exchange, signaling that the market remains highly sensitive to both geopolitical cues and macroeconomic indicators. With optimism growing around possible interest rate cuts, lower inflation, and cooling regional tensions, investors are once again showing confidence in Pakistan’s equity markets.
