The Pakistan Stock Exchange (PSX) ended the week on a historic note as the benchmark KSE-100 Index closed above the 172,000-point level for the first time, reflecting renewed investor confidence and strong buying interest across key sectors.
After a relatively quiet start earlier in the shortened trading week, momentum picked up sharply on Friday, pushing the index to a record closing level of 172,401 points, a gain of 1,571 points in a single session.
PIA Privatisation Lifts Market Sentiment
Market participants attributed the rally largely to the successful privatisation of Pakistan International Airlines (PIA), widely seen as one of the most important economic transactions in nearly two decades. The deal has strengthened expectations that further divestment of loss-making state-owned enterprises could follow, easing fiscal pressure and improving market confidence.
According to market analysts, investors rebuilt positions after the rollover week, keeping sentiment positive throughout the session.
ADB Financing Adds Further Support
Additional support came from the Asian Development Bank’s approval of $730 million in financing for Pakistan. The package includes $330 million for power transmission strengthening and $400 million for state-owned enterprise reforms, reinforcing optimism about long-term structural improvements in the economy.
Key Stocks Drive the Rally
Heavyweight stocks played a decisive role in pushing the index higher. Engro Holdings, Pakistan Petroleum, Systems Limited, National Bank of Pakistan, and Maple Leaf Cement collectively added more than 770 points to the benchmark.
On the downside, stocks such as Lucky Cement, Millat Tractors, Rafhan Maize Products, DH Partners, and Pakistan Services Limited trimmed around 130 points, slightly offsetting gains.
Trading Activity Remains Robust
While overall market participation declined marginally to 797 million shares, the total traded value jumped to Rs38 billion, indicating strong interest in selected stocks. WorldCall Telecom topped the volume chart, with more than 79 million shares changing hands during the session.
Inflation Data Still a Concern
Meanwhile, inflationary pressures persisted, with the Sensitive Price Index (SPI) rising 2.83 per cent year-on-year for the week ending December 25. This marked the 21st consecutive week of price increases, highlighting ongoing cost-of-living challenges.
Market Outlook
Analysts believe the close above 172,000 reflects strong upward momentum and could open the door for further gains in the near term. However, they caution that the 170,000-point level remains a key support zone, and a sustained drop below it may lead to short-term consolidation.
Overall, improved sentiment around reforms, privatisation, and external financing has placed the PSX in a stronger position heading into the coming sessions.
