PSX rallies past 189,000 milestone

FFC-led buying lifts KSE-100 to fresh all-time highs ahead of SBP policy decision

KARACHI:

A strong Friday session at the Pakistan Stock Exchange (PSX) set the tone for the week's close, as a late-session rally led by fertiliser and energy stocks pushed the KSE-100 Index past the 189,000-point mark on optimism over earnings, dividends and the evolving monetary policy outlook. Heavy buying in index heavyweights, particularly Fauji Fertiliser Company (FFC), drove the benchmark to fresh all-time highs, cementing weekly gains and reinforcing bullish sentiment ahead of next week's monetary policy decision.

"During the AM session, the market remained range-bound between 187,000 and 188,000 points," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd. "However, momentum accelerated in the PM session, as rumours of a potential stock split in FFC fuelled buying interest, pushing the index past 189,000 to a record close."

At the close of trading, the KSE-100 Index posted a gain of 1,478.66 points, or 0.79%, to settle at 189,166.83.

Topline Securities, in its market review, noted that range-bound activity prevailed during the first half of the session, while a rally emerged in the second half, largely led by FFC on investor optimism over earnings and payout expectations ahead of the company's upcoming board meeting for approval of annual financial results for the year ended December 31, 2025. The KSE-100 Index gained around 0.8% on the day.

The top positive contribution to the index came from FFC, Engro Fertilisers (EFERT), Pakistan Oilfields (POL), Hub Power Company (HUBC) and Engro Holdings (ENGROH), which cumulatively added 2,206 points. In terms of traded value, FFC led with Rs8.23 billion, followed by HUBC at Rs5.02 billion, Attock Refinery (ATRL) at Rs3 billion, POL at Rs2.39 billion and National Bank of Pakistan (NBP) at Rs2.31 billion. Traded volume and value for the day stood at 876 million shares and Rs58.5 billion, respectively.

Arif Habib Ltd noted that the strong Friday session lifted weekly gains to 2.2% WoW, pushing the market to fresh all-time highs. In the final session of the week, 39 stocks advanced while 64 declined. FFC PA (+8.75%), EFERT PA (+4.1%) and POL PA (+7.05%) contributed the most to index gains, while Pioneer Cement (PIOC) PA (-10.0%), Oil and Gas Development Company (OGDC) PA (-1.4%) and United Bank Limited (UBL) PA (-0.62%) emerged as the biggest index drags.

Investor sentiment was further supported by strong primary market activity, as 705 investors participated in the book-building of the Pak Qatar General Takaful IPO, which was oversubscribed by 21 times, attracting Rs4.7 billion in demand against an offer size of Rs225 million. Nearly four years after policy rates last dipped below 10% in March 2022, the prospect of a single-digit policy rate has re-entered active debate, with expectations that the central bank may deliver a 75bps cut in the upcoming monetary policy statement, potentially taking the policy rate to 9.75%. The outlook remains positive, with higher levels expected in the coming week, supported by technical support around the 185,000-point level.

JS Global's Nawaz Ali explained, "With valuations remaining attractive, further positive activity at the PSX cannot be ruled out. Any policy rate cut could act as a catalyst for market activity," he said, add that, "We maintain a buy-on-dips stance, while advising investors to stay cautious amid ongoing geopolitical developments."

Overall trading volume stood at approximately 878 million shares compared with 1.07 billion shares in the previous session, while the value of shares traded amounted to around Rs58.6 billion. Shares of 478 companies were traded, of which 175 closed higher, 264 fell and 39 remained unchanged.

K-Electric led volumes with over 141 million shares traded, losing Rs0.36 to close at Rs6.74. It was followed by Cnergyico PK with 53 million shares, gaining Rs0.30 to Rs7.96, and Hascol Petroleum with 42 million shares changing hands, losing Rs1.31 to close at Rs24.80. Foreign investors sold shares worth Rs963 million, according to the National Clearing Company.