KARACHI: Pakistan’s stock market staged another powerful rally on Thursday as investors poured money into key sectors, pushing the benchmark KSE-100 Index sharply higher during intraday trading in one of the strongest sessions seen in recent weeks.
The benchmark index at the Pakistan Stock Exchange surged by more than 2,900 points during intraday trade, climbing to around 167,782 points as bullish momentum swept across the market.
Dealers said strong buying activity in banking, fertiliser and energy shares fueled the rally, with investors increasingly optimistic about Pakistan’s economic direction and corporate earnings outlook.
The market had experienced periods of volatility in recent sessions, but analysts noted that the overall trend in May has remained positive. Investors have been encouraged by improving macroeconomic indicators, easing inflation expectations and signs of stability linked to ongoing economic reforms.
Currency markets also showed relative stability on Thursday. The Pakistani rupee recorded slight gains against the US dollar, which traded at Rs278.55 in the interbank market after declining marginally by one paisa.
Market participants said renewed liquidity and stronger investor confidence were major drivers behind the latest surge in equities. Brokers added that expectations surrounding corporate profitability and continued reform measures under Pakistan’s IMF-backed economic programme have further strengthened sentiment.
However, analysts warned that risks still remain. They said fluctuations in global commodity prices, external financing requirements and geopolitical uncertainties could continue to create short-term volatility in the market.
Despite those concerns, Thursday’s rally reinforced growing investor confidence that Pakistan’s financial markets may continue to benefit if economic stability and reform momentum are sustained in the coming months.
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