PSX jumps 1.3% on institutional support

The Pakistan Stock Exchange (PSX) witnessed a strong momentum on Thursday as the benchmark KSE-100 index surged nearly 2,200 points, powered by robust institutional buying and renewed interest in blue-chip shares.

The rally, which pushed the index to the intra-day high of over 2,400 points, marked a sharp shift from the sluggish pace in recent days and reflected improving sentiment despite lingering geopolitical and macroeconomic concerns.

At the close of trading, the KSE-100 index posted gains of 2,184.78 points, or 1.34%, and settled at 165,373.31.

"Upward momentum was built as local institutions led the charge," commented Topline Securities. The local bourse moved higher once again, supported by steady buying from local institutions that kept sentiment positive, it said. The benchmark index touched the intra-day high of 2,422 points, showing solid interest throughout the session. By the close, the market settled at 165,373, gaining 2,185 points. The banking sector stole the spotlight, where Meezan Bank, HBL, UBL and MCB Bank closed higher, aided by healthy volumes.

In the exploration & production sector, OGDC and PPL were not far behind as both stocks attracted investor interest and closed firmly in the green. Index heavyweights – Meezan Bank, Lucky Cement, PPL, OGDC and Engro – contributed around 942 points to the overall gains, Topline added.

Arif Habib Limited (AHL) said that the KSE-100 index finally breached the 164,000 mark, gaining 1.34% day-on-day as market sentiment strengthened, with 75 stocks advancing and 21 declining. Major contributors to the rally were Meezan Bank (+4.42%), Lucky Cement (+3.41%) and PPL (+3.47%), while Pioneer Cement (-0.52%) and PTCL (-0.65%) emerged as key drags on the index.

On the macro front, headline inflation for November 2025 is expected to reach 6.2% year-on-year, with average inflation for 5MFY26 projected at 5%, significantly lower than the 7.9% reading in the same period of last year, AHL said.

In positive developments, Pakistan and its partners were on track to achieve financial close within the next two weeks for the Reko Diq copper and gold project by securing $3.5 billion in funding. Additionally, the Sindh government approved a strategic partnership with China's ADM Group to establish more than 600 electric vehicle charging stations across the province.

As the market heads into the final session of the week, the benchmark index was up 2.02% week-on-week, with the 164,000 level now expected to act as an important support for a potential move back towards October highs, AHL concluded.

Muhammad Hasan Ather of JS Global wrote that buying momentum strengthened as the KSE-100 index rose 1.3% on robust volumes and broad institutional interest across key sectors. If positive macro sentiment and liquidity persists, the rally could be extended, supported by reforms, external inflows and strong earnings. However, renewed external or policy pressures could reintroduce volatility, warranting close investor attention, he said.

Overall trading volumes were recorded at 498.4 million shares compared with the previous session's tally of 636.4 million. The value of shares traded during the day was Rs30.6 billion.

Shares of 484 companies were traded. Of these, 289 stocks closed higher, 152 fell and 43 remained unchanged.

Dost Steels was the volume leader with trading in 48.4 million shares, gaining Rs0.57 to close at Rs8.49. It was followed by WorldCall Telecom with 36.7 million shares, gaining Rs0.04 to close at Rs1.86 and Beco Steel with 25.1 million shares, losing Rs0.12 to close at Rs6.58.

Foreign investors sold shares worth Rs1.8 billion, the National Clearing Company reported.