KARACHI: The Pakistan Stock Exchange (PSX) soared on Friday, driven by optimism surrounding strengthened political and economic relations with the United States. The KSE-100 index surged by 2,977 points, or 1.87 per cent, closing at a record 162,257 — its highest-ever finish — propelled by investor enthusiasm after a key meeting between the leadership of both nations.

The rally broke the psychological 160,000 barrier, with market sentiment buoyed by expectations of better economic prospects. Ali Najib, Deputy Head of Trading at Arif Haib Ltd, said the positive momentum was amplified by growing geopolitical stability, following US President Donald Trump’s remarks praising Pakistan’s civil-military leadership during their landmark meeting. This gesture was seen as a diplomatic win for Pakistan, enhancing its global standing and bolstering investor confidence.

Simultaneously, Pakistan’s improving economic outlook and the ongoing review of the International Monetary Fund’s (IMF) $7bn Extended Fund Facility (EFF) added further support. The IMF’s review mission, which began its work simultaneously in Karachi and Islamabad on Thursday, focused on programme performance, with the Pakistani authorities seeking flexibility on flood-related issues and delays in governance reforms.

Trading volume rose by 2.47pc to 1.7bn shares, while the traded value surged by 27.97pc to Rs70.7bn. The telecom sector was notably active, with WorldCall Telecom dominating the volume charts by exchanging a remarkable 450m shares.

According to Topline Securities, the market’s rally is largely attributed to improving macroeconomic indicators and rising investor confidence.

The cement sector was a significant contributor to the gains, with companies like Lucky Cement, Bestway Cement, and Fauji Cement collectively posting a 52pc year-on-year growth in profitability during FY25, reaching Rs123bn. This was supported by stronger retention prices and a more efficient energy mix.

Notably, major stocks such as Fauji Fertiliser, United Bank, Engro Holdings, Habib Bank, and Mari Energies added 1,424 points to the index, further propelling the market to new heights.The PSX’s upward momentum appears poised to continue, with analysts predicting that the KSE-100 index could soon surpass the 165,000 mark.

Published in Dawn, September 27th, 2025