KARACHI: The Pakistan Stock Exchange (PSX) experienced a strong bullish momentum on Friday, fueled by the announcement of the federal budget for fiscal year 2026-27. The benchmark KSE-100 index closed at 172,400 points, recording a gain of approximately 2,700 points.
The KSE-100 index ended the session at 172,399.9, up by 2,696 points, representing a day-on-day increase of 1.59%. Market analysts attributed the positive performance to broad-based buying across key sectors, as investor sentiment improved significantly throughout the trading day.
Ahmed Sheraz of KTrade Securities noted that the rally was supported by robust trading activity, with the KSE-100 volumes reaching 320 million shares. Among the major volume contributors, The Bank of Punjab led with 53 million shares traded, followed by Maple Leaf Cement with 36 million shares, and Pakistan International Bulk Terminal with 25 million shares.
Global Cues Drive Rally
The rally was primarily driven by strong positive cues from global markets. Overnight gains in US equities boosted overall risk appetite, while a sharp decline in international oil prices provided additional support to investor sentiment. Brent crude fell by more than 5% during the session, briefly trading below $86 per barrel.
This decline followed an announcement by US President Donald Trump that planned military strikes had been called off, indicating that a diplomatic understanding had been reached. Trump also acknowledged the role of regional and strategic partners in helping ease tensions. The sharp drop in oil prices alleviated concerns over inflationary pressures and potential disruptions to global economic activity, encouraging investors to increase their exposure to equities.
Outlook
Going forward, market direction is likely to remain dependent on developments in global geopolitics, trends in international oil prices, and the specifics of the FY27 budget. Investors will continue to monitor these factors closely for further cues.
