RECORDER REPORT

KARACHI: The Pakistan Stock Exchange (PSX) rallied strongly on Friday, driven by a wave of optimism following multiple positive developments — including a breakthrough in trade talks with the United States and expectations of a financial stimulus to address the energy sector’s circular debt crisis.

The benchmark KSE-100 Index surged by 1,644 points, or 1.18 percent, to close at 141,034.99, compared to the previous close of 139,390.42. During the session, the index fluctuated between an intraday high of 141,160.93 and a low of 138,957.71.

Meanwhile, the BRIndex100 closed at 14,422.25, up by 248.17 points, or 1.75 percent, with a total traded volume of 495.79 million shares. BRIndex30 closed at 40,814.43 points which was 1232.19 points or 3.11 percent higher than previous close with the total volume of 324.519 million shares.

According to Topline Securities, the bulls dominated the trading session, driving the market to a new all-time high of 141,034 points. The brokerage attributed the positive momentum to the news that Pakistan had secured a ‘landmark’ tariff agreement with the United States, under which Pakistan will now face reciprocal tariffs of 19 percent, down from the previous rate of 29 percent. Additionally, speculation in the market that the government plans to clear circular debt in the coming weeks by securing PKR 1.25 trillion from banks acted as a stimulus, bolstering investor sentiment.

The broader market witnessed robust participation, with total traded volume in the regular market climbing to 609.7 million shares, up from 577.3 million in the previous session. Traded value also surged to Rs 50.55 billion, compared to Rs 36.34 billion, while market capitalization rose to Rs 16.91 trillion from Rs 16.70 trillion, adding approximately Rs 203 billion to the market’s overall value.

Among actively traded stocks in the ready market, WorldCall Telecom led the volume chart with 55 million shares, followed by Pakistan Petroleum Limited (PPL) with 43 million shares and Oil and Gas Development Company (OGDC) with 37 million shares. OGDC closed at Rs 255.67, PPL settled at Rs 181.78, while Pakistan State Oil (PSO) ended the session significantly higher at Rs 411.72.

In terms of top gainers, Nestle Pakistan Limited stood out by surging Rs 258.29 to close at Rs 7,888.30, followed by Fazal Cloth Mills Limited, which rose Rs 27.89 to settle at Rs 320.86. On the losing side, PIA Holding Company Limited (B) posted the steepest decline, dropping Rs 1,215.51 to close at Rs 27,541.00, while Unilever Pakistan Foods Limited fell Rs 110.63, ending the day at Rs 33,387.33.

Out of 483 listed companies, 199 closed in the green, 246 ended in the red, and 38 remained unchanged — reflecting a market still characterized by selective activity and profit-taking in specific counters.

Sectoral performance showed mixed results. The BR Automobile Assembler Index ended at 23,109.50, down 19.29 points, or 0.08 percent, with a turnover of 2.34 million shares. The BR Cement Index rose by 116.24 points, or 1.08 percent, to close at 10,844.14, on a volume of 22.03 million shares.

The BR Commercial Banks Index gained 376.06 points, or 0.93 percent, to settle at 40,734.40, with 65.92 million shares traded. The BR Power Generation and Distribution Index advanced sharply by 702.59 points, or 3.30 percent, to close at 21,968.39, supported by 27.93 million shares in turnover.

Energy stocks led the charge as the BR Oil and Gas Index posted a strong gain of 637 points, or 5.19 percent, finishing at 12,921.54, on the back of heavy trading volume of 148.42 million shares. In contrast, the BR Technology & Communication Index declined by 60.73 points, or 1.85 percent, to close at 3,220.47, despite topping volumes with 86.89 million shares.

Ahsan Mehanti, Director at Arif Habib Corporation, remarked that the stock market closed near its all-time highs as investors responded to the lower-than-expected CPI inflation figure. He added that the likely resolution of the circular debt crisis, the government’s approval of a PKR 1.275 trillion financial restructuring plan, the favourable US-Pakistan trade agreement, and a cut in fuel prices collectively served as catalysts for the bullish rally witnessed at the PSX.