KSE-100 index posts strongest weekly surge in five years with 11.6% gain
KARACHI: The Pakistan Stock Exchange (PSX) wrapped up a record-breaking week, with the KSE-100 index soaring by 10,123 points (+9.45%) on Monday alone and closing at an all-time high of 119,649 points by week’s end. The benchmark gained a staggering 11.6% over the week—its highest weekly rise in half a decade.
This exceptional rally was driven by several key factors: a US-brokered ceasefire between India and Pakistan, fresh disbursements totaling $2.4 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), and a current account surplus of $1.88 billion for the first 10 months of FY25.
The market opened the week with explosive momentum. On Monday, the index surged 10,123 points to close at 117,298, triggering the upper circuit breaker and marking the largest single-day gain in both absolute and percentage terms in PSX history.
Momentum continued into Tuesday, with the index rising another 1,278 points, surpassing the 118,000 mark. By then, total gains since the previous Friday had exceeded 15,000 points (+14.5%). However, Wednesday brought some volatility, with the index dipping slightly by 39 points as investor sentiment oscillated between optimism and caution.
Thursday saw a renewed rally, with the index jumping 1,425 points (+1.20%) to reach another all-time high. The week concluded on a quieter note Friday, with the index shedding 313 points after a range-bound session.
According to Arif Habib Limited (AHL), the market’s breakout was primarily fueled by easing geopolitical tensions, fresh IMF inflows, and a strong macroeconomic outlook. The United States’ interest in strengthening trade ties with both India and Pakistan further lifted investor sentiment.
Macroeconomic indicators also supported the bullish momentum. Pakistan reported a current account surplus of $1.88 billion for 10MFY25, and large-scale manufacturing (LSM) output showed a 1.79% year-on-year increase in March 2025. Meanwhile, the State Bank of Pakistan (SBP) successfully raised Rs664 billion in a T-bill auction—significantly above the Rs550 billion target—with yields falling 66–90 basis points across all maturities.
In a further boost, MSCI included three Pakistani firms in its Frontier Markets (FM) Index and four in the FM Small-Cap Index.
These factors helped propel the KSE-100 index above the 119,000 milestone, with the SBP’s foreign exchange reserves also rising by $71 million to reach $10.4 billion.
Week-on-week, PSX emerged as the top-performing global market, closing at 119,649 points with an 11.6% gain.
Sector-wise, major contributors to the rally included banking (+2,711 points), exploration and production (+1,937), fertiliser (+1,338), cement (+1,249), and technology (+666). Top performing stocks were UBL (+922 points), Fauji Fertiliser (+876), Pakistan Petroleum (+750), OGDC (+581), and Lucky Cement (+519).
Despite the market rally, foreign investors offloaded $9.13 million worth of shares during the week, reversing last week’s net buying of $1.52 million. Most of the foreign selling was concentrated in the exploration and production sector ($5.98 million).
Trading activity was robust, with average daily volumes rising to 685 million shares (up 34.8% WoW) and average daily traded value increasing to $144.2 million (up 47.1%).
JS Global analyst Abdul Basit noted that Pakistan had initiated virtual technical talks with the IMF regarding the FY26 budget, with formal policy discussions scheduled to begin next week.
The government has also approved the phased privatization of 24 state-owned entities, including Pakistan International Airlines (PIA). According to the Pakistan Bureau of Statistics, LSM posted a 1.8% YoY increase in March after four consecutive months of decline.
The T-bill auction results also reflected investor confidence, as the SBP raised more than targeted amid falling yields across maturities.
