KARACHI: After a day’s pause, the Pakistan Stock Exchange (PSX) resumed its record-breaking momentum on Thursday, with the benchmark KSE-100 index closing at a new all-time high amid rising investor confidence driven by record remittance inflows and renewed access to Middle Eastern financing.

The KSE-100 index surged by 1,205.36 points, or 0.91 per cent, to close at 133,782.35 — just shy of the intraday high of 1,325 points. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market had an intense session on the back of improved investor sentiment.

The rally was fuelled by historic remittances of $38bn in FY25, up 27% year-on-year, and Pakistan’s successful return to Middle Eastern debt markets after a two-year hiatus. The country secured $1bn in Islamic financing from a Dubai Islamic Bank-led consortium, backed by an Asian Development Bank guarantee.

The banking sector led the charge, with broad-based buying in major stocks. Meezan Bank, MCB Bank, United Bank, Bank Al Habib, Habib Bank, Bank Alfalah and Habib Metropolitan Bank collectively added 686 points to the index.

On the corporate front, Kohinoor Cement surged 8.5pc after approving the formation of Ultra Properties (Pvt) Ltd, a wholly-owned subsidiary aimed at entering the real estate sector. The company also announced a 5:1 share split.

Trading activity remained robust, with 940 million shares changing hands and total turnover recorded at Rs36bn. The Bank of Punjab led the volumes with 155.3 million shares traded.

Topline Securities noted that after a two-day breather, the bulls returned to the PSX in full force, driven by investor optimism ahead of the corporate earnings season, which begins on Friday. Anticipation of strong quarterly results spurred buying across key sectors.

In the textile segment, Nishat Mills Ltd stood out as a notable performer.

Ahsan Mehanti of Arif Habib Corporation said the record close was driven by expectations of positive earnings announcements, declining long-term government bond yields signalling possible monetary easing, and hopes of relief in industrial tariffs. He also cited a 4.67pc year-on-year increase in exports during FY25 as a key positive.

Analysts see further upside potential, with technical support now seen at 130,000 and 127,000. Strong macroeconomic fundamentals and earnings optimism are expected to sustain market momentum in the near term.

Published in Dawn, July 11th, 2025