ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) continued its record-breaking streak on Friday, with the KSE-100 Index surging by nearly 600 points during the early hours of trading. By 9:20 AM, the index had reached 119,361.22 points, marking a gain of 591.45 points or 0.5%.
Key Sectors Drive Market Gains
The rally was fueled by buying activity in key sectors, including commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation firms. High-weightage stocks, such as SSGC, WAFI, MARI, OGDC, PPL, HBL, NBP, and UBL, contributed significantly to the market’s upward movement.
The ongoing optimism surrounding the stock market is primarily linked to hopes of an imminent staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF). The market’s positive momentum is also driven by expectations of a resolution to Pakistan’s energy sector circular debt, which, if addressed, could improve cash flows for companies in that sector.
Strong Performance Continues
On Thursday, the KSE-100 Index closed at a new record high of 118,769.77 points, crossing the 119,000 mark for the first time earlier in the session. This marks another milestone in the ongoing rally, which has seen the market post significant gains in recent weeks.
Global Market Trends
While the PSX continues to rise, global markets saw a contrasting trend on Friday. Asian stocks were down, with concerns over geopolitical tensions and the impact of potential US tariffs on the global economy weighing on investor sentiment. This shift caused a flight to safe-haven assets, with gold prices remaining near record highs.
Futures for major US stock indices, such as the S&P 500 and Nasdaq, were steady, but European futures pointed to a weak opening. Central banks worldwide, including the US Federal Reserve, the Bank of Japan, and the Bank of England, held rates steady, signaling caution amid rising trade tensions and geopolitical uncertainties.
Reports of rising geopolitical tensions, including Israeli airstrikes on Gaza and a Ukrainian drone attack on a Russian military airfield, contributed to global market concerns. In Asia, the MSCI index for Asia-Pacific shares outside Japan fell by 0.85%, with notable declines in stocks from China, Hong Kong, Taiwan, and Indonesia.
Despite the global uncertainty, the PSX’s rally reflects continued investor confidence in Pakistan’s market, especially amid positive expectations for key economic agreements.
