Pakistan’s stock market ended the week on a strong note as the Pakistan Stock Exchange (PSX) crossed the historic 172,000-point mark, driven largely by renewed investor confidence following the successful privatisation of Pakistan International Airlines (PIA).
The benchmark KSE-100 Index posted a weekly gain of 0.58%, while a strong trading session during the week saw the index touch an all-time high of 172,400 points, reflecting improved sentiment across key sectors.
PIA Deal Acts as Market Catalyst
Market analysts attributed the rally to the landmark Rs135 billion PIA privatisation, in which an Arif Habib-led consortium acquired a 75% stake in the national carrier. The deal is being widely viewed as one of the most significant privatisation milestones in Pakistan’s history.
The transaction is expected to ease the government’s financial burden from loss-making state-owned enterprises and signal a stronger commitment to structural reforms, encouraging both local and foreign investors.
Key Stocks Drive Index Higher
Several heavyweight stocks played a decisive role in lifting the index. According to market data, ENGROH, PPL, SYS, NBP, and MLCF collectively added over 770 points to the KSE-100 during the session.
In terms of traded value, Bank of Punjab (BOP) led activity, followed by NBP, SEARL, PPL, PTC, and MLCF, highlighting broad-based participation across banking, energy, and industrial sectors.
Overall market activity remained strong, with 797 million shares traded and a daily turnover of Rs38 billion, indicating sustained investor interest.
Interest Rate Cut Adds Momentum
The positive momentum was further supported by the State Bank of Pakistan’s 50 basis-point cut in the policy rate to 10.5%, which lowered borrowing costs and improved liquidity conditions. Analysts say the rate cut has made equities more attractive compared to fixed-income instruments.
Average daily trading volumes during the week stood at 736 million shares, with an average value of Rs31.5 billion, underlining consistent market participation.
Outlook: Reform Optimism Grows
Market experts believe the PIA privatisation could act as a turning point for broader economic reforms, paving the way for future divestments of state-owned entities and improving overall market efficiency.
With policy support, improving liquidity, and renewed confidence in reform momentum, analysts remain cautiously optimistic about the PSX’s near-term outlook.
