KARACHI: The Pakis­tan Stock Exchange extended its bullish momentum on Friday, with the benchmark KSE-100 index breaching yet another milestone to close at a record 134,300 — up 517 points or 0.39pc — on the back of broad-based buying and strong earnings announcements.

Topline Securities attributed the gains to consistent inflows from mutual funds, as investors continue to shift from fixed-income to equity funds. Data from the National Clearing Company of Pakistan Ltd confirmed the trend.

Major positive contributions came from United Bank Ltd, Hub Power, Millat Tractors, Kohinoor Textile Mills, and Pakistan State Oil, which collectively added 430 points to the index.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the index traded both ways during the session but ended on a strong note, supported by healthy macroeconomic indicators and upbeat corporate earnings.

A key driver of Friday’s rally was UBL’s announcement of its highest-ever quarterly cash dividend of Rs8 per share (Rs20bn), alongside its second-quarter results. The bank posted earnings of Rs11.43 per share — up 93pc year-on-year. While earnings were in line with expectations, the dividend surpassed market forecasts of Rs5.5 per share, reflecting strong profitability and a focus on shareholder returns.

The overall mood was further lifted by the country’s foreign exchange reserves hitting a 36-month high of over $20bn and a strong performance by the auto sector, which grew 43pc in FY25, surpassing expectations.

However, profit-taking in some banking stocks slightly offset gains.

Market participation declined, with 764 million shares traded — down 18.75pc from the previous session — while the trading value increased 11.38pc to Rs40.16bn. The Bank of Punjab (BOP) led the volume chart with 94.1 million shares changing hands.

Investor sentiment remains upbeat, with support levels rising to 132,000 and 130,000, reflecting confidence in the sustainability of the current rally.

The ongoing earnings season, especially in the banking and cement sectors, along with improved macroeconomic indicators such as strong remittances, external financing inflows, and revised Public Sector Development Programme (PSDP) spending of Rs1.05tr for FY25, are seen as key catalysts.

Published in Dawn, July 12th, 2025