PSX rebounds to over 184,100 points
Shares of 324 companies were traded. At the end of the day, 90 stocks closed higher, 211 declined and 23 remained unchanged. PHOTO: FILE
The Pakistan Stock Exchange (PSX) rebounded sharply on Friday as the benchmark KSE-100 index climbed over 1,800 points to close above 184,100, after touching an intraday high of 186,619 points, with gains driven by heavy buying in index-heavy stocks amid improving geopolitical signals, easing macroeconomic concerns and renewed investor interest across key sectors, despite profit-taking at higher levels and lingering caution over regional tensions.
"The index took a breather today, surging to an intraday high of 186,619 points (+4,281 points); however, gains were pared back due to profit-taking at elevated levels," said Nawaz Ali of JS Global.
At the close of trading, the benchmark KSE-100 index posted a gain of 1,836.37 points, or 1.01%, to settle at 184,174.49.
JS Global noted that investor sentiment remained cautious amid ongoing geopolitical tensions. Consequently, the benchmark index closed at 184,174, up 1,836 points. While valuations appear appealing, it recommended a wait-and-see approach, as any adverse geopolitical development could weigh on market sentiment.
Market sentiment improved following positive geopolitical developments, with official statements from both the United States and Iran signalling willingness to engage in dialogue and avoid escalation, said Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL).
AHL noted a recovery on Friday, with the market posting a 1.01% day-on-day gain, trimming weekly losses to 2.76%. In the final session of the week, 72 shares advanced while 28 declined. LUCK PA (+3.55%), ENGROH PA (+2.72%) and UBL PA (+1.46%) contributed the most to index gains, while FFC PA (-1.48%), MCB PA (-1.36%) and POL PA (-1.43%) emerged as the biggest drags.
Kicking off 2026, headline inflation in January CY26 is expected to settle at 5.8% year-on-year, slightly higher than 5.6% in December 2025 and well above 2.4% recorded in January 2025. Core inflation (NFNE) for January 2026 is projected at 7.3% year-on-year, moderating from 9.0% in January 2025. Meanwhile, the State Bank of Pakistan's foreign exchange reserves increased by $13 million during the week ended January 23, 2026, reaching $16.101 billion, while total liquid foreign reserves stood at $21.293 billion.
On the external front, oil futures surged to near six-month highs amid concerns over a potential US military strike on Iran, which remains a key near-term risk for equities. For the coming week, AHL expects the market to trade within the 180,000-190,000 range.
Top positive contributions to the index came from ENGROH, LUCK, UBL, MEBL, MARI and HBL, cumulatively adding 1,197 points. Value-wise, FFC, PPL, OGDC, NBP and PTC dominated trading. Investor interest was observed in the textile sector after the prime minister announced a 300-basis-point cut in the Export Finance Scheme rate to 4.5%.
Total traded volume stood at 805.14 million shares, while the value of shares traded amounted to Rs50.83 billion. Shares of 484 companies were traded, with 258 closing higher, 175 lower and 51 unchanged. K-Electric led volumes, followed by Hascol Petrol and WorldCall Telecom. Foreign investors sold shares worth Rs1.3 billion, the National Clearing Company reported.