The Pakistan Stock Exchange continued its unprecedented rally on Friday as the benchmark KSE-100 Index topped 90,000 points, setting a record-breaking milestone for the fourth consecutive session. This historic surge in equity markets is being driven by improving macroeconomic indicators that have bolstered investor confidence and lifted market sentiment across sectors.
As of 10:00 AM, the KSE-100 Index reached 89,952 points, reflecting an increase of 1,006 points or 1.1% compared to the previous session. This year alone, the index has surged by 27,501 points, marking a staggering 44% rise and achieving its 44th record close of the year. Such consistent upward momentum underscores renewed optimism as Pakistan’s economy shows promising signs of stability.
Key Economic Indicators Drive Rally
Economic reports released on Monday have painted an encouraging picture of Pakistan’s financial health. The country’s current account posted a surplus for the second consecutive month, largely due to a robust inflow of home remittances. For the first quarter of the current fiscal year, the current account deficit narrowed significantly by 92%, dropping to $98 million from $1.24 billion during the same period last year. This shift demonstrates a potential easing of external financial pressures and is a positive signal for market participants.
In addition, foreign direct investment (FDI) surged by 81% year-over-year, reaching $385 million in September alone. This growth in FDI is particularly notable as Pakistan continues to work on economic reforms to attract foreign investors and stabilize its currency.
Sector and Stock Highlights
Among individual stocks, several key players led the gains on Friday. The top performers included Pakgen Power Limited (PGLC) with a 12.05% increase, FrieslandCampina Engro Pakistan Limited (FCEPL) up by 8.10%, Pakistan Tobacco Company Limited (PAKT) rising 7.20%, Cherat Cement Company Limited (CHCC) up 5.64%, and Engro Fertilizers Limited (EFERT) with a 5.60% gain.
Conversely, some stocks posted declines, with Premier Sugar Mills and Distillery Company Limited (PSEL) dropping by 9.71%, International Industries Limited (ILP) down by 5.38%, Unilever Pakistan Foods Limited (UPFL) declining by 5.18%, Jahangir Siddiqui and Co. Limited (JVDC) losing 3.00%, and Pakgen Power Company Limited (PKGP) decreasing by 2.95%.
In terms of contributions to the KSE-100 Index, Engro Fertilizers Limited (EFERT) added a significant 219.46 points, followed by Fauji Fertilizer Company Limited (FFC) with 102.04 points, Dawood Hercules Corporation Limited (DAWH) with 87.19 points, Oil and Gas Development Company Limited (OGDC) with 78.96 points, and Pakistan Petroleum Limited (PPL) with 78.95 points.
Sector-wise Breakdown
Sectorally, the rally was supported by a strong performance in fertilizers, which contributed 407.63 points to the index, followed by Oil and Gas Exploration Companies adding 205.74 points, Commercial Banks with 156.60 points, Cement at 102.21 points, and Investment Banks/Securities Companies adding 86.09 points. This diversified sectoral support has been instrumental in sustaining the bullish trend.
The All-Share Index also posted gains, reaching 57,549.58 points with a net increase of 583.88 points or 1.02%.
Outlook
The record-breaking performance of Pakistan’s stock market is a testament to the improving economic conditions and effective policy measures aimed at stabilizing the macroeconomic landscape. Investors remain cautiously optimistic as fiscal reforms and supportive policies continue to draw both domestic and foreign investment. With the KSE-100 Index on track for further gains, market observers are closely watching whether this momentum can be maintained amid global economic uncertainties.
