KARACHI: The Pakis­tan Stock Exchange (PSX) extended its record-setting rally into the fifth consecutive session on Thursday, with the benchmark KSE-100 index closing at an all-time high, driven by robust buying interest across key sectors.

Ahsan Mehanti of Arif Habib Corporation attributed the bullish momentum to the government’s decision to cut rates on National Savings Schemes, prompting a shift of capital into equities. He also cited the State Bank of Pakistan’s (SBP) foreign exchange reserves reaching $14.5bn, lower inflation, reduced industrial power tariffs, and renewed government focus on privatising state-owned enterprises as catalysts behind investor optimism.

Topline Securities Ltd reported that the KSE-100 index settled at 130,686.66, up 342.63 points or 0.26 per cent. The session witnessed significant intraday volatility, with the index touching a high of 131,325 and a low of 129,776 as investors engaged in strategic profit-taking.

The index faced downward pressure due to negative contributions from Bank Al-Habib, MCB Bank, Meezan Bank, Habib Bank, and Millat Tractors, which collectively shaved off 493 points. However, gains in Oil and Gas Development Company, United Bank, and Hub Power offset part of the decline, adding a combined 353 points.

Market participation decl­ined, with traded volume dropping by 12.3pc to 899.84 million shares, while traded value slipped 12.25pc to Rs43.25bn. WorldCall Telecom led the volume chart, with 49.45 million shares changing hands.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, described the session as a “tug of war” between bulls and bears. Despite the volatility, the key psychological level of 130,000 held firm. Analysts expect the market may now enter a consolidation phase, with 127,000 seen as a crucial support level in the coming sessions.

Published in Dawn, July 4th, 2025