PSX smashes past 168,000 mark in record-breaking rally amid strong investor confidence

The Pakistan Stock Exchange witnessed a historic surge as the benchmark KSE-100 index closed above the 168,000 mark for the first time ever. Investor confidence was buoyed by strong buying activity in the banking sector, resulting in a remarkable gain of 2,849.29 points, or 1.72%, with the index settling at 168,489.63 by the close of trading on Thursday.

Intra-day trading showed notable volatility, with the index touching a high of 168,619.32 and a low of 165,567.22. A total of 776 million shares were traded, reflecting bullish sentiment and heightened investor participation.

The rally was attributed to improving economic indicators, the ongoing corporate earnings season, and renewed interest from foreign investors in sectoral opportunities in Pakistan.

Arif Habib Limited (AHL) reported that the PSX saw another strong surge, with the KSE-100 index gaining +1.72% day-on-day (DoD) to hit a high of 168.6k. Of the total, 55 shares rose while 45 fell. Meezan Bank (+8.65%), United Bank (+3.08%), and Bank Al Habib (+6.27%) contributed the most to index gains, while Lucky Cement (-1.45%), Hub Power (-0.68%), and TPL REIT Fund (-6.02%) were the biggest drags.

In financial news, the Pakistan Bureau of Statistics (PBS) reported that Pakistan's trade deficit widened to $3.341 billion in September from a revised $2.872 billion in August. Exports fell 11.7% year-on-year (YoY) in September, while imports rose 14%. Additionally, total cement sales rose 7% YoY in September to 4.25 million tons.

In a major development, Procter & Gamble Co announced it will discontinue its business in Pakistan, winding down manufacturing and commercial activities of P&G Pakistan and Gillette Pakistan Ltd. Meanwhile, Fatima Fertiliser (+2.74%) achieved a milestone as its market capitalization crossed the $1 billion mark.

Heading into the last session of the week, the KSE-100 was up 3.84% week-on-week (WoW), with support now rising to 166,000, AHL noted.

KTrade Securities said in its market wrap that the PSX had a strong “banking day” as financial stocks rallied sharply, pushing the index up by 2,849 points (+1.72% DoD) to close at a record high of 168,490. The rally was led by major banks, including MEBL, UBL, BAHL, HBL, NBP, MCB, BOP, FABL, and BAFL, all posting notable gains on strong investor interest. Participation remained robust, with All-Share Index volumes hitting 1.56 billion shares.

Investor sentiment was supported by positive macro and geopolitical developments, including the Pakistan–Saudi defence cooperation agreement, a circular debt reduction plan for the energy sector, and improving Pak-US relations. These signals of strengthening international relations and economic reform bolstered investor confidence and optimism about the market’s outlook, KTrade wrote.

Topline Securities stated that stocks closed the session on a strong upward trajectory, settling at 168,489 after a robust gain of 2,849 points (1.72%). Bullish momentum prevailed throughout the day, with the index touching an intra-day high of 168,619. The rally was largely fueled by continued aggressive buying from mutual funds, which sustained investor confidence and propelled market sentiment.

The banking sector emerged as the standout performer, collectively contributing 1,827 points to the index. However, overall gains were modestly trimmed by profit-taking in Lucky Cement, Hub Power, and Systems Limited, which together pulled back 192.05 points, Topline concluded.

Investor participation remained exceptionally high, with total traded volumes reaching 1.569 billion shares and turnover amounting to Rs70.1 billion. The Bank of Punjab led the volume board with 148 million shares traded during the session.

Overall trading volume decreased slightly to 1.57 billion compared with Wednesday’s tally of 1.63 billion. Shares of 489 companies were traded; 239 closed higher, 227 fell, and 23 remained unchanged. The Bank of Punjab was the volume leader, with trading in 148.2 million shares, rising Rs2.98 to close at Rs32.78.