The KSE 100-Index of the Pakistan Stock Exchange (PSX) turned around to bullish trend on Friday, gaining 927.86 points, a positive change of 0.84 per cent, closing at 111,351.18 points as compared to 110,423.32 points on the last trading day.

A total of 815,920,043 shares were traded during the day as compared to 628,026,201 shares the previous trading day, whereas the price of shares stood at Rs32.917 billion against Rs33.582 billion on the last trading day.

As many as 443 companies transacted their shares in the stock market, 223 of them recorded gains and 176 sustained losses, whereas the share price of 44 companies remained unchanged.

This rally was driven by fresh buying activity as investors seized value opportunities after a period of heavy selling.

Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, noted that the market appears to be rebounding after recent declines, suggesting that profit-taking and correction may have concluded for now.

The positive momentum coincided with critical economic updates.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial disclosed a substantial Rs7.1 trillion tax gap, with Rs2.4 trillion attributed to income tax discrepancies.

Finance Minister Muhammad Aurangzeb emphasized the government’s goal to raise the tax-to-GDP ratio from 9-10% to 13.5%, alongside the introduction of stricter regulations for non-filers.

Despite these encouraging developments, external economic pressures remain.

The State Bank of Pakistan reported a $228 million drop in foreign exchange reserves, totaling $11.85 billion as of December 20. Nevertheless, this reflects a significant improvement from the low levels seen earlier in 2023.

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Trade data revealed a 12.57% increase in exports during the first five months of FY2024-25, alongside a notable current account surplus of $729 million in November, the highest in a decade.

Additionally, foreign direct investment rose by 31% year-on-year.

Overall, these indicators suggest a positive shift in Pakistan’s economic landscape, contributing to the PSX’s rally and boosting investor sentiment.