KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking run for the seventh consecutive session on Friday, with the benchmark KSE-100 index added 500.44 points closing at 168,990, just shy of the 169,000 mark. At its peak, the index gained 1,499 points, or 0.89 per cent, before late-session profit-taking saw some gains erode.

The session began on a positive note, with broad-based buying pushing the index to an intraday high of 169,989. However, investor caution set in towards the end of the day, as traders locked in profits ahead of the weekend. Despite the profit-taking, the index managed to maintain its upward momentum, closing near the day’s high. Key contributors to the index’s gains included Fauji Fertiliser, United Bank, Hub Power, Systems Ltd, and Adamjee Insurance, which together added 980 points.

In contrast, the banking sector, which had been a major driver of the rally in previous sessions, saw some pullback. Stocks such as Meezan Bank, MCB Bank, Habib Bank, and Bank Al-Habib collectively lost 577 points, largely due to profit-taking. The drop in banking stocks contributed to the cooling off of the early gains, highlighting the market’s sensitivity to sectoral rotations.

Energy stocks also showed notable movement, with the power generation sector, particularly Hub Power, benefiting from sustained investor optimism over energy prices and government policy support. Meanwhile, cement and steel sectors saw mixed performance. While the cement sector remained resilient, driven by ongoing infrastructure projects, steel stocks struggled due to concerns over rising raw material costs and potential disruptions in supply chains.

On the broader market front, participation remained strong, with 1.57bn shares traded and a total turnover of Rs78.6bn. Cnergyico PK led the volume chart with 21 million shares traded, reflecting investor interest in energy and industrial stocks.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, highlighted that while the early rally was driven by aggressive buying across sectors, profit-taking in the latter part of the session served as a reminder of market volatility. Despite this, the market’s historic performance indicates strong investor confidence, with a general sense of optimism surrounding future economic recovery.As the second review under the $7b Extended Fund Facility is underway, the International Monetary Fund (IMF) has expressed cautious optimism about Pakistan’s economic recovery. The Fund acknowledged progress in fiscal consolidation and structural reforms but warned that the country’s external account remains vulnerable. With inflationary pressures still high and external debt challenges, the IMF emphasised the need for continued reforms to ensure long-term stability. These macroeconomic factors are likely to influence investor sentiment in the coming weeks.

Published in Dawn, October 4th, 2025