KARACHI: The Pakistan Stock Exchange (PSX) snapped a four-day losing streak on Friday, staging a strong recovery as institutional investors engaged in value-hunting despite widespread flooding in Punjab that threatened standing crops and the farm sector.

The benchmark KSE-100 index gained 1,274 points, or 0.86 per cent, to close at 148,618. According to Topline Securities, the rally was driven mainly by institutional buying following pressure from futures rollover and ahead of the August inflation data.

Ahsan Mehanti of Arif Habib Corporation said the bullish close was supported by rupee appreciation, rising foreign exchange reserves of the State Bank of Pakistan, and government deliberations on resolving the circular debt issue.

The cement sector led the recovery, driven by expectations of higher despatches for August, contributing 555 points to the index. Key gainers included DG Khan Cement, Lucky Cement, Fauji Cement, Maple Leaf Cement, and Cherat Cement.

Trading activity also picked up, with volumes rising 43.47pc to 1.34bn shares, while the traded value jumped 56.06pc to Rs52.3bn. Bank of Punjab topped the volume chart with 1.28bn shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market ended the month on a positive note, with renewed investor interest in cement stocks amid fresh debates over the urgent need for water storage infrastructure following the floods.

Analysts, however, cautioned that lingering macroeconomic challenges and climate-related risks may cap bullish momentum, with the 146,500–148,000 zone seen as a critical support level.

Published in Dawn, August 30th, 2025