Bulls were in control at the Pakistan Stock Exchange (PSX) on Friday as the benchmark KSE-100 index rose by more than 4,800 points with analysts attributing the rally mainly to the extension of the ceasefire between Pakistan and Afghanistan.

The KSE-100 index rose by 4898.86 points, or 3.13 per cent, to close at 161,631.73 points, breaking a seven-day losing streak.

Yousuf M. Farooq, director of research at Chase Securities, told Dawn.com that the market rebounded today on “reports of Pakistan–Afghanistan ceasefire talks, the end of rollover week, and renewed institutional buying after the recent correction opened up valuations”.

“Focus now shifts to the International Monetary Fund (IMF) review and any revenue measures (including possible tax increases) needed to meet targets,” he said, adding that investors will also watch Monday’s trade balance data for cues on the economic outlook.

“Retail investors should use equities primarily for long-term wealth creation, set asset allocation by age, liquidity needs and risk appetite, and avoid overexposure if they have short-term cash requirements,” he said, adding that “volatility is normal and should be expected”.

Awais Ashraf, director of research at AKD Securities, told Dawn.com that after the continuation of the ceasefire between Pakistan and Afghanistan, the market shifted focus “back to improving macroeconomic fundamentals”.

He added that the stocks of companies that reported strong results, or were pursuing expansion plans, saw sharp recoveries.

“In the near term, key triggers include the IMF Executive Board’s approval for the release of US$1.2bn, the financial close of the Reko Diq project, and the renegotiation of regasified liquified natural gas contracts with Qatar,” he said.

Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, also agreed that the ceasefire with Afghanistan had helped market sentiment as he attributed the rally to “easing geopolitical tensions”.