The Pakistan Stock Exchange on Thursday staged a powerful rebound, when the benchmark KSE-100 index surged by over 5,400 points, reclaiming the 160,000 level in a decisive rally driven by strong institutional buying and renewed investor confidence.

The session marked a sharp recovery from recent volatility as bulls took control from the opening bell. Index-heavy stocks like Hubco (+7.15%), OGDC (+8.24%) and others led the charge, contributing significantly to the gains, while trading volumes rose to 724 million shares valuing at Rs35 billion. K-Electric dominated the volumes with over 115 million shares traded.

At the close of trading, the KSE-100 index posted a strong gain of 5,433.46 points, or 3.49%, and settled at 161,210.68.

According to Arif Habib Limited (AHL), the stock market staged a strong rebound as the benchmark index pushed higher from its 200-day moving average, gaining 3.49% to reclaim the 160,000 level. Market participation remained broadly positive, with 85 shares advancing while 14 declined among key index movers.

The major contributors included Hubco, which rose 7.15%, OGDC, higher by 8.24%, and Fauji Fertiliser, which despite declining 2.93% remained among the notable stocks influencing index movements. On the downside, Abbott Laboratories fell 3.5%, Highnoon Laboratories declined 2.42% and Fatima Fertiliser slipped 0.82%, emerging as the biggest drags on the index.

Meanwhile, geopolitical and macroeconomic developments also remained in focus. Pakistan's top military leader stated that the country was willing to halt operations against Afghanistan if the Taliban government stopped supporting terror groups operating from its territory. On the economic front, Saudi authorities assured Pakistan of secure energy supplies through the Port of Yanbu on the Red Sea, helping support the country's energy requirements, it said.

Additionally, Pakistan was preparing to introduce several measures, including weekly petroleum price revisions, compensation to oil companies for higher insurance costs and import premiums, and fuel conservation initiatives. Finance Minister Muhammad Aurangzeb also assured a parliamentary panel that Pakistan had adequate petroleum reserves, including 28 days of petrol and diesel supply.

Despite the strong rebound during the session, the market remained down about 4% week-on-week while heading into the final trading day and continued to trade within the large gap created by Monday's sharp decline, AHL said.

"Bulls stormed back with authority in Thursday's trading session, firmly planting their feet from the outset," Topline Securities stated in its review. Strong institutional buying turned the tide after the market's recent overreaction to regional issues, as confidence swiftly replaced caution.

Momentum gathered strength as the session progressed, driving the index to the intra-day high of 5,699 points before closing at 161,211 – up 5,433 points. It was not merely a rebound, but a statement rally marked by decisive accumulation and broad-based strength. Index-heavy constituents including Hubco, OGDC, Fauji Fertiliser, Engro Holdings and Meezan Bank led the charge, collectively contributing 2,197 points to the benchmark's gain and reinforcing the bullish undertone, Topline said.

During the day, shares of 478 companies were traded. Of these, 350 stocks closed higher, 78 fell and 50 remained unchanged.

K-Electric was the volume leader with trading in 115.6 million shares, gaining Rs0.61 to close at Rs8.05. It was followed by Trust Securities & Brokerage (R) with 50.03 million shares, losing Rs0.04 to close at Rs0.18 and Unity Foods with 48.3 million shares, gaining Rs0.55 to close at Rs10.08. Foreign investors sold shares worth Rs1.4 billion, the National Clearing Company reported.