The Pakistan Stock Exchange (PSX) extended its bullish run on Friday, with the benchmark KSE-100 Index gaining 868.68 points to close at 119,840.08 — a 0.73% increase. With this rise, the index is now just shy of the 120,000 mark, signaling growing investor optimism driven by favorable macroeconomic developments and corporate earnings. Over the last two trading sessions, the index has added more than 1,500 points.
The market opened with a strong bullish sentiment, continuing the momentum from Thursday when the index surged by 638 points. Intraday highs of 119,503 were seen early in the session, and sustained buying pressure helped maintain gains until closing. This steady rise indicates a return of confidence among both local and foreign investors.
Sectoral performance played a vital role, with key industries like cement, banks, oil & gas exploration, refineries, chemicals, and power leading the way. Stocks such as HUBCO, OGDC, PPL, PSO, MCB, HBL, and UBL not only gained but also contributed heavily to the index’s rise. The positive trend was widespread, not limited to one or two sectors, hinting at broad economic optimism.
Behind this surge are improving fundamentals: inflation has dropped significantly, the current account has returned to a surplus, and Pakistan’s credit rating has been upgraded by Fitch from CCC to B-. Moreover, expectations of a policy rate cut by the State Bank and a slight recovery in foreign exchange reserves have also brightened the market outlook.
Analysts say the PSX could see further growth if political clarity continues to improve and expected inflows — such as IMF support and bilateral funding — materialize. Institutional investors are actively participating again, and if this momentum holds, the KSE-100 may break past the 120,000 level in the coming week, reaching new historic highs.