KSE-100 Surges to 131,949 on Stable Rupee and Inflation Easing Hopes

The Pakistan Stock Exchange (PSX) ended the week on a bullish note as the KSE-100 Index surged by 1,262 points, closing at 131,949, driven by strong investor sentiment around macroeconomic stability, a firm Pakistani rupee, and expectations of easing inflation.

This 0.97% gain capped another strong session for the market, continuing its upward trend as institutional investors placed bets on an improving economic outlook and an anticipated positive corporate earnings season.

📈 Banking Sector Leads the Rally

The banking sector emerged as the top performer, contributing over 1,000 points to the day’s gain. Major banks like United Bank Ltd (UBL), Habib Bank Ltd (HBL), Bank Al-Habib (BAHL), MCB Bank, and Meezan Bank (MEBL) led the charge, backed by robust investor interest and strong financial outlooks.

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, the rally was fueled by optimism over monetary policy easing, improving economic indicators, and confidence ahead of Q2 earnings reports.

⚠️ Profit-Taking in Energy and Fertiliser Stocks

Despite the overall bullish sentiment, profit-taking was observed in several heavyweight stocks in the fertiliser and energy sectors. Notable laggards included:

• Fauji Fertilizer Company (FFC)

• Engro Corporation (ENGROH)

• Pakistan Petroleum Ltd (PPL)

• Oil & Gas Development Company (OGDC)

• Mari Petroleum (MARI)

These five companies collectively trimmed 341 points from the index.

🔄 Market Activity and Turnover

• Total Volume: 728 million shares

• Total Turnover: Rs34.8 billion

• Top Traded Stock: WorldCall Telecom Ltd (WTL) with 57.4 million shares

📊 Weekly Performance Snapshot

The KSE-100 recorded a weekly gain of 7,570 points (+6.09%), starting the week at 124,931 and reaching a peak of 132,108. The sustained rally reflects rising investor confidence amid stabilizing foreign exchange reserves, a controlled inflation outlook, and positive macroeconomic signals.

🧠 Outlook: Bullish Momentum Expected to Continue

Market analysts remain optimistic. Najib noted that the 130,000-point mark is now acting as a key support level, while 127,000 remains a secondary floor. If the bullish trend persists, the index could aim for new all-time highs in the coming weeks.