The Pakistan Stock Exchange (PSX) witnessed a historic rally on Friday, with the benchmark KSE-100 index surging past the 156,000-point barrier to close at an unprecedented 156,087.30. The index recorded a significant gain of 1,810.11 points, marking a 1.17 percent increase from the previous day’s close. This bullish trend continues despite ongoing concerns about economic risks posed by recent floods, which have caused billions of rupees in crop losses.
According to market analysts, the sustained optimism is primarily driven by improving macroeconomic indicators and corporate earnings that have surpassed expectations. Awais Ashraf, Research Director at AKD Securities, stated that these positive factors have effectively outweighed investor concerns about the flood’s impact. He projected that the market is expected to maintain its positive momentum in the coming weeks, with all eyes on the upcoming Monetary Policy Committee meeting and developments regarding the circular debt resolution.
Further bolstering this outlook, analysts have set a ambitious target of 165,215 points for the KSE-100 by December 25th. This anticipated growth is forecasted to be driven by strong earnings in the fertilizer sector, sustained returns in banking equities, and improving cash flows for exploration and production以及oil marketing companies, all benefiting from falling interest rates and broader economic stability.
Yousuf M. Farooq, Research Director at Chase Securities, attributed the rally to abundant domestic liquidity, with individuals and funds steadily deploying cash into the market. He described the market as being in an “optimism phase,” where lower interest rates are pushing savers from fixed income into equities. While acknowledging risks such as rising market leverage and potential flood-related drag on growth, Farooq advised investors to participate with discipline, focusing on staggered entries and prudent positioning, letting improving earnings—not euphoria—drive returns.
