The Pakistan Stock Exchange (PSX) closed on a bullish note Friday, with the benchmark KSE-100 Index surging by 1,262 points, or 0.97%, to settle at 131,949. The rally marked another strong session, extending the market’s upward streak as investors responded positively to strengthening macroeconomic indicators, including a stable rupee, rising foreign exchange reserves, and signs of easing inflation.

Market sentiment was further boosted by strong institutional buying, particularly in the banking and energy sectors. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the rally to mounting expectations of monetary easing and investor optimism ahead of the upcoming corporate earnings season.

Heavyweights in the banking sector drove the gains, with United Bank Ltd (UBL), Habib Bank Ltd (HBL), Bank Al-Habib (BAHL), MCB Bank, and Meezan Bank (MEBL) collectively contributing over 1,000 points to the index.

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However, profit-taking was observed in major fertiliser and exploration stocks. Fauji Fertilizer (FFC), Pakistan Petroleum (PPL), Engro (ENGROH), Oil and Gas Development Company (OGDC), and Mari Petroleum (MARI) together shaved off 341 points.

Despite the bullish trend, overall trading activity remained moderate. Total volume reached 728 million shares, with a turnover of Rs34.8 billion. WorldCall Telecom Ltd (WTL) led the volume chart with 57.4 million shares traded.

Weekly Snapshot: Strong Gains Continue

The benchmark KSE-100 Index posted a weekly gain of 7,570 points, or 6.09%. The index opened the week at 124,931 and climbed to a high of 132,108 before closing at 131,949, reflecting growing investor confidence amid stabilising economic fundamentals.

Analysts expect the bullish momentum to continue, citing favourable macroeconomic trends, strong institutional flows, and anticipated healthy quarterly earnings. Najib highlighted the 130,000 level as key support for the index, with 127,000 serving as a secondary floor.

“If positive momentum continues, the index could target fresh all-time highs in the coming weeks,” Najib added.