KARACHI: The Pakistan Stock Exchange (PSX) closed the week on a strong note, with the benchmark KSE-100 Index posting robust gains despite experiencing sharp bouts of volatility during the trading week, as improved investor sentiment and renewed institutional buying helped the market recover from midweek losses.
According to the PSX’s weekly trading data, the benchmark KSE-100 Index settled at 176,094 points, registering a gain of 5,072 points on a week-on-week basis.
The market remained highly volatile throughout the week, with the KSE-100 Index moving within a 4,510-point trading band. The benchmark touched an intraweek high of 179,123 points and a low of 174,612 points, reflecting alternating phases of aggressive buying and profit-taking.
The week’s rally was largely fuelled by a spectacular rebound at the beginning of the week, when the benchmark index surged more than 5,000 points in a single session, supported by improved investor confidence following the State Bank of Pakistan’s decision to leave the benchmark policy rate unchanged at 11.5 per cent, easing international crude oil prices and renewed institutional interest in blue-chip stocks.
The momentum, however, proved short-lived as investors resorted to profit-taking over the next three sessions, dragging the market lower before selective value buying returned on Friday to cap the week in positive territory.
Trading activity remained healthy during the week, with investors exchanging 4.15 billion shares worth Rs158 billion, indicating sustained market participation despite heightened volatility.
Meanwhile, the total market capitalisation increased by Rs477 billion during the week to Rs19.755 trillion, reflecting the overall improvement in equity valuations.
Analysts said the market’s resilience underscored growing investor confidence in Pakistan’s improving macroeconomic outlook, although they cautioned that volatility is likely to persist in the near term as investors continue to monitor corporate earnings, economic indicators, inflation trends and the implementation of ongoing structural reforms.
They noted that while the week’s gains marked a welcome recovery after recent market fluctuations, sustaining the bullish momentum would depend on continued institutional buying, policy consistency and further positive economic developments.
