Karachi, March 7, 2025 – The Pakistan Stock Exchange (PSX) saw a strong rally on Friday, with the benchmark KSE-100 index gaining 685 points as investors reacted positively to expectations of a solution to the country’s circular debt issue.
The KSE-100 index of the PSX closed at 114,398 points, up from the previous day’s 113,713 points, marking a 0.6% increase. Analysts at Topline Securities Limited noted that the market extended its upward momentum from the previous session, driven largely by gains in oil and cement stocks.
Oil sector stocks led the charge following reports that the government had finalized an agreement with commercial banks to borrow Rs 1.25 trillion at an interest rate below 11% to address circular debt. Meanwhile, cement stocks attracted investor interest amid a decline in coal prices, further boosting market sentiment.
The PSX saw significant contributions from major companies, with PSO PA, FCCL PA, HUBC PA, PPL PA, PIOC PA, LUCK PA, and CHCC PA collectively adding 513 points to the index. Market observers credited the rally to renewed investor confidence in the economic measures being taken to resolve financial challenges.
In terms of trading value, PSO led the session with transactions worth Rs 4.58 billion, followed by FCCL (Rs 2.56 billion), PPL (Rs 2.41 billion), OGDC (Rs 1.99 billion), MLCF (Rs 1.25 billion), and DGKC (Rs 1.22 billion). The overall traded volume and value for the day stood at 404 million shares and Rs 27.83 billion, respectively, highlighting strong investor participation.
With the PSX continuing its positive trajectory, market analysts remain optimistic about further gains in the coming sessions, particularly if the circular debt issue is effectively addressed. The PSX has demonstrated resilience amid economic challenges, and investor sentiment appears to be improving as key sectors show strength. Looking ahead, analysts suggest that stability in oil prices, fiscal measures, and economic reforms will play a critical role in sustaining the current bullish trend in the PSX.