PSX rebounds to close bullish week with record 3.13% rally

After being in the red for four days, Pakistan’s equities recorded a stellar comeback on Friday to close the week with a record rally buoyed by the ceasefire agreement between Pakistan and Afghanistan.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) surged by 3.13%, gaining 4,898 points to close at 161,632.

This was the fourth-highest single-day gain by the index. The previous three records were also set this week, indicating the positive momentum in the market throughout the year.

According to Topline Securities, the market traded in the green throughout the session after reports that Pakistan and Afghanistan have agreed to maintain a ceasefire on their borders following the talks in Istanbul.

Market brokers said the rebound followed a steep correction over the past seven sessions, during which the index had lost nearly 13,000 points.

The major positive contributors to the index were United Bank Limited, Meezan Bank Limited, Fauji Fertilizer Company, Habib Bank Limited, Bank Al Habib Limited, Systems Limited, Lucky Cement, and Bank Alfalah, which together added 2,390 points.

Last week, Pakistan’s stock market fell by 0.3% or 502 points week-on-week, to close at 163,304 as volatility gripped the market due to weaker-than-expected corporate earnings.

The PSX has delivered its best 9-month performance since 2009, supported by improved investor sentiment.

Analysts have said the momentum in the KSE-100 is expected to continue, given the smooth completion of the IMF's second review, minimal flood impact, and improved credit ratings by global agencies, amid falling fixed income yields.