KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish momentum on Monday, propelling the benchmark KSE-100 index beyond the 161,000-point barrier as investors continued aggressive buying across the board on renewed optimism.

According to Topline Securities Ltd, the index climbed to an intraday high of 2,288 points before settling at 161,538.41, gaining 1,945.50 points, or 1.22 per cent. The surge was largely driven by a resurgence of investor confidence following the Economic Coordination Committee’s (ECC) approval of a comprehensive inter-corporate circular debt settlement plan.

Adding further impetus, the ECC sanctioned Rs660 billion in sovereign guarantees against Rs1.225 trillion in commercial loans to tackle the mounting circular debt. It also approved the diversion of gas supplies to fertiliser plants — a move that triggered broad-based buying, particularly in energy and fertiliser counters.

Index-heavyweights Engro Holdings, Fauji Fertiliser, Engro Fertiliser, Oil and Gas Development Company, and Pakistan Petroleum led the rally, collectively contributing 1,243 points to the index. In contrast, Pakistan Services, United Bank, AGP Ltd, and Meezan Bank collectively trimmed 199 points from the benchmark.

Investor participation improved slightly over the previous session, with traded volume rising 1.88pc to 780 million shares, while traded value jumped 18.34pc to Rs36.3 billion. First National Equities Ltd topped the volume chart with 73.7m shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said that after three consecutive sessions below 160,000 points, the PSX had “regained its consolidation zone of 160,000-170,000.” He attributed the uptrend to the federal cabinet’s approval of the 27th Constitutional Amendment, which helped ease political uncertainty, alongside the ECC’s gas supply decision — both key drivers of investor confidence.

On the macroeconomic front, Pakistan recorded its highest-ever quarterly budget and primary surplus, with a budget surplus of Rs2.119 trillion (1.6pc of GDP) in the first quarter of FY26.Analysts noted that with the 160,000 level now acting as strong support, market sentiment remains upbeat, with attention firmly on the 165,000 mark for a potential breakout later this week.

Published in Dawn, November 11th, 2025