Stocks jump on positive domestic and regional cues

The Pakistan Stock Exchange (PSX) extended its winning streak on Thursday, with the benchmark KSE-100 Index surging 2,473.55 points, or 1.56%, to close at 160,657.50. Trading remained robust throughout the session, as the index touched an intra-day high of 160,944.51 and a low of 158,971.49. The upbeat sentiment reflected renewed investor confidence driven by political progress, improved security conditions, and a calmer regional outlook.

The rally was broad-based, with major sectors such as cement, fertiliser, and oil & gas leading the charge. Investor confidence improved sharply as signs of political calm and regional stability supported a broad market rebound. Participants viewed recent political progress as a move toward steadier governance, helping restore faith in the continuity of economic reforms. The more predictable environment encouraged renewed interest across major sectors, with sentiment turning decisively positive through the trading session.

Momentum was also lifted by a string of encouraging domestic and regional updates. The Sri Lankan cricket team’s decision to continue its Pakistan tour after fresh security assurances was taken as a strong signal of growing international confidence in the country’s stability. At the same time, a successful clearance operation against terrorist elements in Khyber Pakhtunkhwa reassured investors about the security landscape. On the diplomatic front, the Indian Cabinet’s measured reaction to the Delhi explosion, which avoided any direct reference to Pakistan, eased cross-border concerns. Collectively, these developments fostered a sense of calm and optimism, driving robust buying interest across the board.

KTrade Securities Equity Trader Ahmed Sheraz wrote that the PSX witnessed a strong reversal of fortunes on Thursday as the KSE-100 Index surged by 2,473 points (+1.56% DoD) to close at 160,657 points. The rally was broad-based with major sectors, including cement, fertiliser, and oil & gas, all recording significant gains.

Read: PSX suffers 3,668 point plunge, as 27th Amendment, terror reports trigger sell-off

Market sentiment improved on the back of multiple positive developments. The passage of the 27th Constitutional Amendment in Parliament was viewed as a step towards political stability. Confidence was further strengthened after the Sri Lankan cricket team decided to continue its tour in Pakistan following renewed security assurances. Additionally, a successful clearance operation in Khyber Pakhtunkhwa and the Indian Cabinet’s statement on the Delhi explosion, notably not mentioning Pakistan—helped ease concerns, collectively supporting the market’s momentum.

The rally was driven by strong performances in blue-chip stocks such as Fauji Fertiliser, Lucky Cement, Maple Leaf Cement, DG Khan Cement, Mari Energies, Fauji Cement, Cherat Cement, Hub Power, and Pioneer Cement, which together contributed significantly to the day’s surge. Additionally, MLCF and PIOC hit their upper circuits (10%) following MLCF’s announcement to acquire a controlling stake in PIOC.

Despite the index’s strong upward move, overall market participation remained relatively muted. Looking ahead, Sheraz expects sentiment to remain closely tied to developments on the law-and-order situation, political landscape, and macroeconomic front, particularly the release of the upcoming IMF tranche and evolving regional geopolitical dynamics.

Overall trading volume jumped to 797.1 million shares versus Wednesday’s tally of 757.2 million, while the value of traded equity stood at Rs35.1 billion. Shares of 477 companies were traded, of which 285 closed higher, 142 fell, and 50 remained unchanged. Bank Makramah emerged as the volume leader with 112.2 million shares, rising Rs0.02 to close at Rs5.59.