Banking, energy and fertiliser stocks lead gains amid positive investor sentiment
The Pakistan Stock Exchange (PSX) continued its upward momentum on Friday, with the benchmark KSE-100 Index gaining nearly 500 points during the opening minutes of trading as investors maintained strong buying interest across key sectors.
By 9:35am, the benchmark index stood at 184,992.43 points, up 471.47 points, or 0.26 percent, from the previous close.
Buying activity remained concentrated in major sectors, including commercial banks, chemicals, fertiliser, oil and gas exploration companies, oil marketing firms, power generation and refineries. Heavyweight stocks such as HUBCO, MARI, OGDC, PPL, POL, PSO, MCB and MEBL traded in positive territory, supporting the market’s advance.
The rally followed another positive session on Thursday, when the KSE-100 Index closed at 184,520.96 points after gaining 470.86 points. Investor confidence continued to benefit from easing geopolitical tensions between the United States and Iran, alongside declining international oil prices, although late-session profit-taking trimmed earlier gains.
Trade deficit widens despite market optimism
Meanwhile, fresh economic data released by the Pakistan Bureau of Statistics showed the country’s trade deficit widened by 21.57 percent during fiscal year 2025-26, reaching $39.471 billion compared with $32.467 billion in the previous fiscal year.
The increase resulted from a combination of declining exports and a significant rise in imports, highlighting ongoing external sector challenges despite improving market sentiment.
Global markets deliver mixed performance
Internationally, Asian markets opened on a mixed note after weaker-than-expected US employment data reduced expectations of an immediate interest rate increase by the Federal Reserve.
MSCI’s broad Asia-Pacific index outside Japan edged up 0.1 percent after two consecutive sessions of losses, while South Korea’s Kospi declined following weakness in US semiconductor stocks. Japan’s Nikkei 225 fell one percent, whereas S&P 500 and Nasdaq futures posted modest gains.
US labour market data released on Thursday showed slower job growth in June, accompanied by downward revisions to previous months. Although the unemployment rate declined to 4.2 percent, labour force participation dropped to its lowest level in more than five years, reinforcing expectations of a gradually cooling US economy.
