Strong PSX bullish momentum was witnessed on Thursday as the Pakistan Stock Exchange opened on a positive note, with the benchmark KSE-100 Index surging more than 1,100 points in early trading. The rally reflected renewed investor confidence, supported by positive domestic economic indicators and easing concerns on key logistical issues.
By 9:50am, the KSE-100 Index was trading at 171,455.35 points, up 1,141.50 points or 0.67%. The strong start marked a sharp turnaround from the previous session’s volatility and highlighted growing optimism among market participants.
Key Sectors Lead the Rally
The PSX bullish momentum was broad-based, with buying activity observed across several key sectors. Cement stocks gained on expectations of improved construction activity, while commercial banks attracted investor interest amid stable macroeconomic signals.
Oil and gas exploration companies, oil marketing companies (OMCs), power generation firms, and refineries also traded higher. Heavyweight stocks played a significant role in lifting the index, with names such as ARL, HUBCO, PSO, SNGPL, SSGC, MARI, MEB, MEBL, and NBP all trading in the green during early hours.
This sector-wide participation suggests that the rally was not driven by speculative interest alone, but by improving sentiment across the broader market.
Support From Fiscal Developments
One of the key drivers behind the PSX bullish momentum was encouraging fiscal data. The State Bank of Pakistan reported that the country’s current account posted a surplus of $100 million in November 2025. This surplus signaled improving external balances and provided reassurance to investors concerned about Pakistan’s foreign exchange position.
A healthier current account reduces pressure on the currency and supports overall economic stability—factors that often translate into stronger equity market performance.
Relief on the Logistics Front
Another positive development supporting market sentiment was the resolution of the cargo transporters’ wheel jam strike. Transporters operating between Karachi’s seaports and factories across the country called off the strike after the government agreed to address their demands.
Among the key concessions was an increase in allowed road usage time for 20-feet long, 10-wheel cargo vehicles to 19 hours a day. This move is expected to ease supply chain disruptions, reduce delays, and lower costs for industries reliant on efficient cargo movement. The development further fueled PSX bullish momentum, particularly in sectors linked to manufacturing and exports.
A Volatile Session Before the Bounce
The strong opening followed a volatile session on Wednesday, when the PSX experienced sharp swings. The previous day’s downward movement was largely driven by mixed investor sentiment and selective profit-taking after the index touched a historic intraday high.
The KSE-100 Index ended Wednesday’s session at 170,313.86 points, down a modest 133.44 points or 0.08%. Despite the slight decline, the market showed resilience, setting the stage for Thursday’s rebound and renewed PSX bullish momentum.
Global Markets Paint a Mixed Picture
While local factors supported the PSX, global markets presented a mixed backdrop. Asian shares declined on Thursday as technology stocks faced renewed pressure over concerns about heavy spending on artificial intelligence.
MSCI’s Asia-Pacific index excluding Japan fell 0.5%, with South Korea down 1.3% and Hong Kong’s Hang Seng Index slipping 0.5%. Japan’s Nikkei also declined by 1.2%, reflecting broader caution in the region.
In contrast, US futures showed mild recovery. Nasdaq futures gained 0.3% and S&P 500 futures rose 0.2% after a tech-led selloff on Wall Street. Investors remain cautious amid concerns over record AI-related investments, particularly after shares of Nvidia fell sharply.
Why PSX Is Defying Global Weakness
Despite global uncertainty, PSX bullish momentum highlights the market’s increasing sensitivity to domestic fundamentals rather than international volatility. Improving external accounts, progress on economic stabilization, and easing operational bottlenecks have helped insulate the local market from global headwinds.
Moreover, attractive valuations and expectations of further policy stability have encouraged both institutional and retail investors to re-enter the market.
Sustainability of the PSX bullish momentum will depend on continued positive macroeconomic indicators, progress on reforms, and consistency in policy direction. While short-term volatility cannot be ruled out, especially given global uncertainties, the underlying trend suggests growing confidence in Pakistan’s economic outlook.
If supportive data continues and corporate earnings meet expectations, the PSX could maintain its upward trajectory, with the KSE-100 Index testing new highs in the coming sessions.
