The stock market surged ahead on Friday, extending its bullish momentum as investors reacted to corporate earnings projections and improving macroeconomic stability.
The session kicked off with a powerful rally, driven by aggressive buying that propelled the index upward throughout the day, reflecting heightened investor confidence and renewed optimism in the economic outlook.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed 1,864.76 points, or 1.65%, in early trading, reaching an intraday high of 115,071.16, reflecting sustained investor confidence, while the lowest level was recorded at 113,692.87.
Market analysts attributed the rally to optimism surrounding upcoming financial earnings reports, which are expected to indicate strong profitability across various sectors. Investors also took positions amid expectations of continued monetary easing by the State Bank of Pakistan (SBP) following recent policy rate cuts.
Despite the market’s robust performance, concerns over Pakistan’s foreign exchange reserves persisted. The State Bank of Pakistan (SBP) reported a decline of $76 million in reserves, bringing the total to $11.372 billion in the week ending January 24. The central bank attributed the decline to external debt repayments, which continued to weigh on the country’s financial position.
Total foreign exchange reserves fell by $137 million to $16.052 billion, while reserves held by commercial banks declined by $61 million, settling at $4.68 billion. The drop in reserves highlights ongoing external financing challenges, with financial inflows failing to offset debt servicing obligations.
The strong momentum seen on Friday followed a major rebound in the previous session, where the KSE-100 Index posted a gain of 1,719.04 points (1.54%), closing at 113,206.40 from the prior session’s 111,487.36. The market remained volatile, hitting an intraday high of 113,400.57 while touching a low of 111,805.66.
Looking ahead, analysts anticipate continued volatility as investors closely watch corporate earnings reports and key macroeconomic developments.
