PTBP Web Desk
The Pakistan Stock Exchange (PSX) continued its robust buying momentum on Friday, as the benchmark KSE-100 Index surged over 1,000 points in the first half of the trading session. By 12:00 pm, the index was trading at 161,669.42 points, reflecting a gain of 1,011.93 points, or 0.63%, signaling renewed investor confidence in the market.
The rally was broad-based, with significant buying interest observed across key sectors, including:
- Automobile assemblers
- Commercial banks
- Fertilizer companies
- Oil and gas exploration firms
- Oil Marketing Companies (OMCs)
- Power generation and refinery stocks
Index-heavy stocks, such as OGDC, POL, PPL, PSO, WAFI, HBL, and MCB, traded firmly in the green, providing strong support to the benchmark index. Analysts noted that improved sentiment in these large-cap sectors was a key driver of the mid-session surge.
On the corporate front, tensions at K-Electric (KE) added a layer of caution. Well-informed sources told Business Recorder that the warring Board of Directors postponed a crucial meeting on Thursday. One faction walked out shortly after the first agenda item was approved.
The primary focus of the KE Board was the potential removal of CEO Syed Moonis Abdullah Alvi, a move opposed by several stakeholders. Recent activities of some board members have reportedly irked the Al-Jomaih Group of Saudi Arabia, which has already issued a $2 billion legal notice to the government in Islamabad. Market participants were closely monitoring these developments, noting their potential impact on investor sentiment in utility and energy sectors.
Thursday’s trading session had already set a bullish tone for the market. The KSE-100 Index closed at 160,657.50 points, marking a significant gain of 2,473.55 points or 1.56%. Analysts attributed the rally to renewed investor confidence following merger and acquisition news in the cement sector, which has historically had a strong influence on market trends.
The bullish trend at PSX occurred despite pressure on international markets, reflecting the resilience of local investors. On Friday, Asian markets participated in a global selloff:
- Japan’s Nikkei fell 1.8%
- Australia’s resources-heavy stocks dropped 1.5%
- South Korea’s KOSPI plunged 2.3%
The declines were triggered by hawkish comments from Federal Reserve officials, which tempered hopes of a U.S. interest rate cut in the coming month. Additionally, weak lending data from China raised concerns about household and business borrowing amid economic uncertainty.
Overnight trading in Wall Street also reflected heightened caution. Technology and AI-focused stocks, including Nvidia, suffered steep losses due to valuation concerns. Treasury yields retreated as investors scaled back expectations for a December Fed rate cut, with probabilities dropping to 51% from 63% a day earlier.
Market experts highlighted that these international developments indirectly influence the Pakistan Stock Exchange KSE-100, particularly as investors weigh foreign capital flows and currency movements alongside domestic corporate news.
Local investors remained optimistic despite geopolitical and corporate uncertainties. The KSE-100 Index continues to be supported by strong performances in banking, energy, and fertilizer sectors, while automobile and power stocks attracted speculative buying.
Analysts suggest that if merger and acquisition activity continues, particularly in cement and energy sectors, it could further bolster the market. However, unresolved corporate disputes, such as the K-Electric Board conflict, and global economic uncertainty may act as short-term volatility triggers.
