Strong buying momentum was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing above 185,000 on Friday.

The bulls maintained their grip throughout the session, pushing the index to an intra-day high of 185,208.98.

At close, the benchmark index settled at 185,098.83, up by 3,642.50 points or 2.01%.

Analysts attributed the buying spree to expectations of a further policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting.

“There has been fresh buying from funds and institutional investors, while selling pressure has largely subsided,” Sana Tawfik, Head of Research at Arif Habib Limited, said.

“Following yesterday’s PIB auction, where yields have declined, the market is anticipating that a rate cut could be announced in the upcoming MPC. This reflects broader market expectations,” she added.

Buying interest was seen in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, MCB, MEBL, NBP and UBL, traded in the green.

The federal government on Thursday announced that prices of petroleum products will remain unchanged for the next fortnight, starting January 16, 2026. As per the notification, the price of High Speed Diesel (HSD) has been maintained at Rs257.08 per litre, while Motor Spirit (petrol) will continue to be sold at Rs253.17 per litre.

On Thursday, PSX ended the session sharply lower as heightened volatility, weak investor sentiment and sustained selling pressure across key sectors overshadowed select gains in heavyweight stocks, pushing major benchmark indices into negative territory. The benchmark KSE-100 Index closed at 181,456.34 points, down 1,113.48 points, or 0.61%.