Investor confidence soared on Friday as the Pakistan Stock Exchange (PSX) closed at a historic high. The benchmark KSE-100 Index ended the week at 124,379.41 points, its highest-ever closing level. The index gained 2,332 points during the week, fueled by optimism following the approval of the Finance Bill 2025.
Budget Clarity Drives Market Sentiment
On the last trading day of the week, the KSE-100 jumped 2,333 points or 1.91%, recovering sharply from Thursday’s dip. Market participants reacted positively to the Rs17.57 trillion federal budget’s passage, which provided clarity on fiscal policy and stability in the political landscape.
The rally reflected strong buying across major sectors including banking, cement, oil and gas, and autos. Heavyweights such as OGDC, MCB, PSO, and Mari Petroleum closed in the green, significantly driving the index higher.
Read: KSE-100 Jumps 1,581 Points on Budget Approval, US Trade Breakthrough
Momentum Builds After Volatility
Thursday’s session had seen profit-taking amid uncertainty over the budget vote. However, Friday’s rally confirmed renewed investor trust in the market outlook. The intraday high reached 125,247.4 points, showing aggressive upward momentum.
Trading activity remained robust, with over 750 million shares exchanged and a traded value exceeding Rs30 billion. The All-Share Index also rose by 1,376 points to close at 77,679.81, signaling broader market strength.
Key Drivers Behind the Surge
Analysts pointed to several key factors behind the bullish trend: foreign interest in Pakistani equities, expectations of a rate cut by the State Bank, and continued IMF engagement under a new program.
With a nearly 78% rise since July 2023, the KSE-100 stands among the top-performing frontier markets over the past year. Experts believe the rally could continue if economic stability persists and policy reforms translate into corporate growth.
Eyes on Monetary Policy and IMF
Looking ahead, market watchers will monitor upcoming monetary policy decisions and external financing progress. These developments could determine whether the current momentum extends into the next fiscal quarter.
Read: New Zealand Crush Pakistan 6-2 to Clinch FIH Nations Cup Title
