KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) on Friday as the benchmark KSE-100 index skyrocketed by more than 4,800 points, snapping a week-long losing streak. Analysts credited the surge to the extension of the ceasefire between Pakistan and Afghanistan, renewed institutional interest, and improved market sentiment following recent corrections.
The KSE-100 index soared 4,898.86 points, or 3.13 per cent, closing at 161,631.73 points, marking one of the strongest single-day recoveries in recent weeks.
According to Yousuf M. Farooq, Director of Research at Chase Securities, the rebound was driven by reports of Pakistan–Afghanistan ceasefire talks, the end of rollover week, and renewed institutional buying after valuations opened up.
He noted that investor focus is now turning toward the International Monetary Fund (IMF) review, potential revenue measures such as tax adjustments, and the upcoming trade balance data due Monday all of which will be key indicators of Pakistan’s economic direction.
Farooq advised retail investors to use equities for long-term wealth creation, stressing that portfolio decisions should reflect individual age, liquidity needs, and risk appetite. He added that volatility is normal and should be expected.
Awais Ashraf, Director of Research at AKD Securities, said the continuation of the ceasefire shifted investor focus back to improving macroeconomic fundamentals. He highlighted that stocks of firms with strong earnings or expansion plans saw notable recoveries.
Ashraf identified near-term triggers for market movement, including the IMF Executive Board’s expected approval of a US$1.2 billion tranche, the financial close of the Reko Diq project, and renegotiations of RLNG contracts with Qatar.
Echoing similar views, Samiullah Tariq, Head of Research and Development at Pak Kuwait Investment Company, said the market rally was a direct reflection of “easing geopolitical tensions” and an overall improvement in investor sentiment.
With geopolitical stability gradually returning and global commodity pressures easing, analysts believe that the PSX could continue to recover in the short term, provided macroeconomic fundamentals and policy consistency hold firm.