Pakistan’s benchmark KSE-100 index gained 1,290 points or 0.77% to close at 169,865 on Friday, supported by improved liquidity and renewed investor confidence after a fresh IMF report praised the government’s structural reform efforts.
The report, released earlier in the week, highlighted Islamabad’s commitment to fiscal consolidation, energy sector reforms and anti-corruption measures. These are central to the $7 billion bailout package secured in September 2024. The IMF’s assessment eased concerns about policy slippage during Pakistan’s post-flood recovery, where inflation stands at 22 percent. The endorsement drew foreign inflows and helped revive sentiment in a market that had been down 15 percent year-to-date before the rise.
Fertilizer, commercial banks and cement stocks led the gains, contributing a combined 917 points to the index. Fauji Fertilizer Company added 371.67 points on strong quarterly earnings. MCB Bank gained 150.03 points and Habib Bank Limited added 72.37 points as investors factored in expectations of an interest rate cut. Cement stocks posted gains in anticipation of increased infrastructure spending.
Trading volumes fell to 309 million shares from 656 million a day earlier, indicating selective buying. The KM-30 index rose 0.88 percent to 244,231, while the KSE All Share Index increased 0.54 percent to 102,725. Hum Network led volumes with 161 million shares, followed by Bank of Punjab with 72 million.
Some stocks weighed on the index. Engro Corporation lost 38.39 points on concerns over gas pricing. Servis Industries fell 45.95 points due to supply chain issues. Analysts said the market could maintain momentum if reforms progress but cautioned that global oil price volatility remains a key risk.
