The Pakistan Stock Exchange (PSX) continued to attain new highs on Friday as yet another 800 points took shares across the 109,000 mark, with analysts noting investors’ increased interest in buying equities.

The benchmark KSE-100 index rose 814.99 points, or 0.75 per cent, to stand at 109,053.95 points at the end of the session from the previous close of 108,238.96.

The surge came just a day after the PSX witnessed the third-largest single-day rally of 3,134.63 points. It follows sustained optimism after Pakistan’s annual inflation rate dropped to 4.9pc in November, its lowest level since 2017.

Awais Ashraf, director of research at AKD Securities, noted that the “absence of attractive alternative investment opportunities is attracting investors to equities, which are currently available at relatively low multiples”.

“Additionally, expectations of an interest rate cut in the upcoming Monetary Policy Committee meeting [on Dec 16] are also contributing to the upward movement of the index,” he highlighted.

Ashraf pointed out that in today’s trading session, Engro and Dawood Hercules combined added more than 400 points to the index, following their agreement with Pakistan Mobile Communications Limited on tower assets.

Yesterday, Topline Securities Ltd Chief Executive Mohammed Sohail had attributed the session’s stellar performance to non-stop buying by local mutual funds, which helps local bourses create new records every day.

Meanwhile, Ahsan Mehanti of Arif Habib Corporation had said rupee stability, falling lending rates, government debt stock and bond yields drove the market to new highs.

According to Mehanti, the PSX achieved another milestone as market activity surged to an almost 19-year high, with a traded value of Rs63.0bn ($227m).

Record-breaking volumes underscored the day’s intense trading activity, reflecting broad-based participation across sectors. The rally was predominantly driven by relentless buying from local mutual funds, the primary catalyst for sustaining the bull run.