Strong buying momentum swept through the Pakistan Stock Exchange (PSX) on Friday, sending the benchmark KSE-100 Index up more than 3,100 points within the opening minutes of trade. the index was seen around 184,609.02, up 3,152.69 points or 1.74%.

Market participants linked the rally to expectations of an interest rate cut in the upcoming Monetary Policy Committee (MPC) meeting, following signals from the latest Pakistan Investment Bonds (PIB) auction where yields declined. Analysts said fresh institutional and fund-based buying had re-emerged while selling pressure had eased considerably.

Broad-based interest was visible across major sectors including automobiles, cement, banks, fertiliser, oil & gas exploration, oil marketing companies, and power generation. Heavyweight stocks such as HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, MCB, MEBL, NBP and UBL traded higher during the session.

Meanwhile, the federal government kept local fuel prices unchanged for the next fortnight starting January 16, 2026. High-Speed Diesel (HSD) will remain at Rs257.08 per litre, while petrol will continue at Rs253.17 per litre.

The latest surge came a day after the market closed sharply lower due to heightened volatility and weak sentiment, with the KSE-100 Index ending Thursday at 181,456.34, down 1,113.48 points or 0.61%.

Globally, Asian shares advanced on Friday as the artificial intelligence rally regained strength. The US dollar held near a six-week high after upbeat US economic data prompted traders to scale back rate cut expectations. Oil prices eased and safe-haven metals softened amid geopolitical uncertainty, while US President Donald Trump signaled a cautious stance on unrest in Iran.

MSCI’s Asia-Pacific index (excluding Japan) rose 0.5%, hovering near record highs after strong earnings from Taiwanese chipmaker TSMC lifted semiconductor stocks. A US–Taiwan trade agreement announced Thursday, involving tariff reductions and new tech investments, also bolstered sentiment.

On Wall Street, technology and financial stocks supported overnight gains, with Nasdaq futures up 0.22% and S&P 500 futures higher by 0.15% during the Asian session. Japan’s Nikkei slipped 0.42% as the yen rebounded from multi-month lows. EUROSTOXX 50 futures were down 0.38% and FTSE futures dipped 0.18% after European equities rallied to record levels a day earlier.