The benchmark KSE-100 index gained 2,294.64 points, or 2.36%, reaching 99,623.03 during intra-day trade, up from its previous close of 97,328.39 points.
Tahir Abbas, Head of Research at Arif Habib Limited, told media that the market is in continuous positive momentum.
The primary reasons behind this, he said, are the economic indicators, improvement of macros, plus the expectation that the inflation number will be around 4.5% this month. Then, Abbas added, there is an expectation that interest rates will be cut further next month.
The analyst also noted the key role of liquidity in driving the market’s growth, saying: “Apart from that, local liquidity is very robust. Money is coming into the market continuously from different sets of investors.”
Increased liquidity from mutual funds, banks, and insurance companies has further fueled the rally, with market experts pointing to surging foreign exchange reserves, positive current account data, and privatisation hopes as catalysts for growth.
Across-the-board buying was observed in key sectors including automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies, and power generation.
Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan, increased by $29 million to $11.29 billion, marking a 31-month high.
Total liquid foreign reserves reached $15.97 billion. The Pakistani rupee appreciated 0.11% on Friday, closing at Rs277.96/$ in the inter-bank market.
Market sentiment is buoyed by inflation dropping to levels unseen since 2022. Expectations of an interest rate cut next month are drawing investors from fixed-income securities to equities, contributing to the PSX’s robust growth.
Despite the consistent upward trajectory, analysts maintain that PSX valuations remain attractive, signaling further room for growth.
