The PSX rally gained momentum as investors bought stocks at dips, pushing the KSE 100 index near 168,000 intraday. Positive economic developments boosted investor confidence. Saudi Arabia rolled over a $3 billion deposit with the State Bank of Pakistan for another year. The president also approved the Chief of Defence Forces appointment, easing political uncertainty. These factors supported the market and encouraged buying activity.
The index closed at 167,085.85 points, up 802 points or 0.48 percent on Friday. Analysts noted that the market remained in a consolidation phase. Trading volume rose 13 percent to 687 million shares. Market value surged 33.24 percent to Rs41.6 billion. Telecard Ltd led trading in terms of volume with 58 million shares.
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On the corporate side, Service Industries announced that its subsidiary, Service Long March Tyres (SLM), would raise capital through an Initial Public Offering. The IPO aims to list SLM shares on the PSX. Market experts expect such listings to attract more investors. Local institutions also supported the market by buying at dips. Their activity contributed significantly to the rally.
Top positive contributors included Fauji Fertiliser, Pakistan Petroleum, Oil and Gas Development Company, Pakistan Services, Lucky Cement, and Systems Ltd. Together, these stocks added 607 points to the index. Analysts said the energy sector could lead future gains. Expectations of circular debt disbursement next week may spark further buying in key E&P and power stocks. Market sentiment remains highly optimistic.
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Overall, the PSX rally reflects strong investor confidence amid economic support and positive corporate activity. Experts predict the market could attempt an all-time high soon. Energy and power sectors are expected to lead this momentum. Continued buying by local institutions and policy stability may sustain growth in coming sessions.