The Pakistan Stock Exchange (PSX) witnessed a strong bullish turnaround on Friday as investor optimism surged, propelling the benchmark KSE-100 Index beyond the historic 172,000-point level. The rally reflected renewed confidence in Pakistan’s economic outlook, supported by positive macroeconomic signals and strong sectoral participation.

During intraday trading, the KSE-100 Index climbed sharply by 1,295.19 points to reach 172,125.41, registering a gain of 0.66 percent. The upbeat momentum followed a market holiday on December 25 and marked a decisive recovery after the previous session’s modest losses.

Market breadth remained firmly positive, highlighting broad-based buying interest. Out of 562 listed companies, 273 closed in the green, while 153 recorded losses and 137 ended the session unchanged. This distribution underlined sustained investor participation across multiple sectors rather than a narrow, stock-specific rally.

Several key factors contributed to the surge. The release of loan tranches by the International Monetary Fund boosted confidence in Pakistan’s financial stability. Expectations surrounding interest rate cuts further encouraged equity inflows, while improving corporate earnings outlooks added to the positive sentiment.

Heavy buying was observed in major sectors including automobile assemblers, cement, commercial banks, fertilizers, oil and gas exploration firms, oil marketing companies, and refineries. These sectors traditionally carry significant weight in the index and played a central role in lifting the market.

Index-heavy stocks traded firmly in positive territory, providing additional support to the rally. Shares of ARL, PRL, HUBCO, MARI, OGDC, PPL, PSO, WAFI, HBL, MCB, and NBP all closed higher, reflecting confidence in blue-chip counters.

Trading activity also showed notable improvement. Total market volume rose to 811.558 million shares, compared to 650.136 million shares in the previous session. The value of shares traded increased to Rs 29.795 billion, indicating stronger participation from both institutional and retail investors.

Despite the index gains, overall market capitalization slipped slightly to Rs 19.361 trillion from Rs 19.397 trillion a day earlier, largely due to declines in select high-value stocks.

On the volume leaderboard, Pakistan International Bulk Terminal led with 62.126 million shares traded, followed closely by the Bank of Punjab with 61.349 million shares. PIA Holding Company also remained active, with 54.392 million shares changing hands.

Among top performers, The Thal Industries Corporation Limited surged by Rs 64.38 to close at Rs 789.47, while Unilever Pakistan Foods Limited gained Rs 42.00 to end the session at Rs 28,992.00.

On the downside, PIA Holding Company Limited-B recorded a sharp decline of Rs 1,836.74 to settle at Rs 19,149.59. Rafhan Maize Products Company Limited also faced selling pressure, falling by Rs 1,168.61 to close at Rs 10,912.76.

The strong close above 172,000 underscores growing confidence in Pakistan’s equity market. If supportive economic developments continue, analysts believe the PSX could maintain its upward trajectory in the near term.