Stocks Rally: Unexpected Market Recovery

Pakistan Stock Exchange Rebounds with Unexpected Rally Amid Rising Unemployment

Despite challenging macroeconomic conditions, the Pakistan Stock Exchange (PSX) experienced a important recovery rally on Wednesday, November 27th, 2025, snapping a three-day losing streak. The surge was largely attributed to late-day buying activity as investors sought value in the market.

Did you know? – the KSE-100 index is considered the benchmark for measuring the performance of the Pakistani stock market, reflecting the value of the 100 largest companies listed on the PSX.

PSX Index Surges Nearly 1%

According to data from Topline Securities Ltd, the benchmark KSE-100 index closed at 163,188.53 points, representing an increase of 1,496.04 points – a gain of 0.93 percent.Throughout the trading session, the index navigated a range between 160,564.86 and 163,397.24. Initial market volatility gave way to stability as institutional investors increased thier positions.

Key Stocks Drive Market Gains

Several key stocks played a pivotal role in the rally. Fauji Fertiliser, Meezan Bank, Habib Bank, national Bank, and Oil and Gas Progress Company collectively contributed approximately 1,058 points to the overall index advance. This concentrated buying pressure underscored investor confidence in these leading companies.

Pro tip: – Diversification is key when investing.While these key stocks drove gains, spreading investments across various sectors can mitigate risk and enhance long-term returns.

Trading Volume and Value Increase

Market participation saw a notable uptick, with total trading volume rising 7.76 percent to 636.4 million shares. Concurrently, the traded value increased by a substantial 39.59 percent,reaching Rs30.9 billion. WorldCall Telecom led the volume charts, with 47 million shares changing hands during the day.

Value-Hunters Fuel Recovery

“Signs of recovery emerged despite a flattish opening,” noted a senior trader at Arif Habib Ltd. “The market initially faced selling pressure, but value-hunters stepped in to provide crucial support, ultimately pushing the benchmark into positive territory.” This late-session intervention proved decisive in reversing the earlier downward trend.

Positive Outlook for Remainder of Rollover Week

Analysts anticipate that the positive momentum will continue as the rollover week progresses. The index is projected to maintain its upward trajectory and potentially approach the 165,000 level in the remaining two trading sessions.This optimistic outlook suggests a growing sense of confidence in the PSX’s near-term performance.

Unemployment Reaches 21-Year High

However, the positive market performance occurred against a backdrop of concerning macroeconomic data. Pakistan’s unemployment rate has risen to 7.1 percent, the highest level in 21 years. A government official attributed this increase to the ongoing International Monetary fund (IMF) program and disruptions caused by climate change, both of which have impacted economic activity.

Reader question: – How do you think the rising unemployment rate will ultimately affect investor confidence in the PSX, and what measures could be taken to address this concern?

Why did the PSX rally? The PSX experienced a rally due to late-day buying activity from investors seeking value in the market, despite challenging economic conditions.
who was involved? Institutional investors, value-hunters, and traders at firms like Arif Habib Ltd. and Topline Securities Ltd. were key players. Key stocks like Fauji Fertiliser, Meezan Bank, Habib Bank, National Bank, and Oil and Gas Development Company also drove gains.
What happened? The KSE-100 index