Buying rally continued at the Pakistan Stock Exchange (PSX) on Friday, amid optimism over the recent meeting between Prime Minister Shehbaz Sharif and US President Donald Trump, with the benchmark KSE-100 settling above the 162,000 level, a new record high, on Friday.
Positive momentum persisted throughout the trading session, hitting an intra-day high of 162,422.28.
At close, the benchmark index settled at 162,257, a gain of 2,976.91 points or 1.87%.
Analysts attributed the momentum to improvement in Pakistan’s economic outlook.
“Continued economic recovery and better prospects due to improved geopolitical standing of Pakistan are driving the rally,” Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company Limited, told media.
In a key development, Prime Minister Shehbaz Sharif called on US President Donald Trump at the White House on Thursday. He was accompanied by Field Marshal Syed Asim Munir NI (M), HJ, Chief of the Army Staff.
While discussing the situation in the Middle East, the prime minister lauded Trump’s efforts to bring about an immediate end to the war in Gaza, especially his initiative to invite key leaders of the Muslim world in New York, earlier this week, for a comprehensive exchange of views for restoration of peace in the Middle East, in particular Gaza and the West Bank.
During the meeting, the prime minister invited the US companies to invest in Pakistan’s agriculture, IT, mines and minerals and energy sectors.
“The prime minister expressed the confidence that under President Trump’s leadership, the Pakistan-US partnership would be further strengthened to the mutual benefit of both countries,” read the statement.
Meanwhile, Waqas Ghani, Head of Research at JS Global, said that improved external and fiscal balances under the International Monetary Fund (IMF) programme have strengthened confidence in macro stability.
“Corporate earnings prospects remain upbeat, particularly in cyclicals. Sentiment is further buoyed by strong liquidity and momentum as investors chase the rally,” he added.
Prime Minister Shehbaz Sharif also expressed satisfaction over PSX’s recent performance.
“By the grace of Allah Almighty and tireless efforts of the business community and the government, a new history is being created in the stock market every day,” the PM was quoted as saying in a statement.
“The country is moving towards economic development after economic stability,” he added.
On Thursday, the buying rally continued at the PSX, as optimism over government measures to address the crippling circular debt pushed the KSE-100 Index to settle at a new all-time high. At close, the benchmark index settled at 159,280.09, an increase of 1,043.42 points or 0.66%.
Globally, shares in Asia slid on Friday, with pharmaceutical companies hit hard after US President Donald Trump unveiled a fresh round of punishing tariffs and as traders pared bets of sharp US rate cuts following stronger-than-expected economic data.
Trump announced the US would impose 100% duties on imported branded drugs, 25% tariffs on heavy-duty trucks and 50% tariffs on kitchen cabinets.
He also said he would start charging a 50% tariff on bathroom vanities and a 30% tariff on upholstered furniture, with all the new duties to take effect from October 1.
Shares of pharmaceutical companies across Asia tumbled in the aftermath, with Japan’s Topix pharmaceutical index last down 1%, while the Hong Kong-listed innovative drug index slid 2.8%.
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