PSX rebounds strongly with 1,300-point rally driven by retail, institutional buying

Market activity remained strong, with the KSE All Share Index recording turnover of 1.02 billion shares

Renewed optimism swept through the Pakistan Stock Exchange as the benchmark KSE-100 index posted a strong gain of nearly 1,300 points, supported by broad-based buying across key sectors.

The rally was evident in automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation and refinery stocks, signalling robust interest from both retail and institutional investors. This sector-wide momentum helped reinforce overall market strength despite a cautious economic backdrop.

A shift in market dynamics also appears to be emerging. Bloomberg reported that retail investors are increasingly driving Pakistan’s market surge, reflecting a rare phase of confidence after years of political uncertainty and volatility.

According to the report, the KSE-100 Index has climbed roughly 40% in 2025, placing it among Asia’s top-performing markets as improved political stability and attractive returns draw in individual investors. Traders are moving towards equities as alternative investment options stagnate, with property prices flat and deposit rates having halved over the past two years.

Throughout Wednesday’s session, the benchmark index oscillated between an intraday high of 162,741.73 and a low of 161,279.02 before closing at 162,226.28, up 1,291.15 points, or 0.80%.

Read: PSX stumbles as selling pressure mounts

In its market wrap, KTrade Securities noted that the PSX closed on a positive note primarily due to continued strength in Fauji Fertiliser, which has recently been reclassified as a Shariah-compliant stock. The stock outperformed in an otherwise muted market, while mutual fund buying added further support.

Fertilisers remained the largest contributors to the index’s gains, followed by the oil and gas sector. Major positive movers included Fauji Fertiliser, Pakistan Petroleum, Oil & Gas Development Company, Pakistan State Oil, Engro Fertiliser and Maple Leaf Cement.

Market activity remained strong, with the KSE All Share Index recording a turnover of 1.02 billion shares, reflecting healthy participation. KTrade said sentiment is expected to track developments in law and order, broader political shifts and macroeconomic indicators. Investor focus will remain on the upcoming IMF tranche and regional geopolitical developments, which are likely to shape near-term market direction.

Overall trading volume declined to 1 billion shares, down from 1.5 billion on Tuesday. Shares of 484 companies were traded, with 194 closing higher, 244 lower and 46 unchanged. WorldCall Telecom led the volume chart with 160.2 million shares traded, slipping Rs0.14 to close at Rs1.91.