KARACHI: Despite an unprecedented downpour in Karachi — the economic nerve centre of Pakistan — that hampered business and industrial activities across the city, the Pakistan Stock Exchange (PSX) continued its bullish run, hitting an all-time high of 149,770 points.

The benchmark KSE-100 index briefly crossed the psychological barrier of 150,000 in intraday trading, before profit-taking trimmed some early gains. Nonetheless, the market ended at a record level, marking a net gain of 1,572 points, or 1.06 per cent.

According to Topline Securities, the positive momentum from previous trading sessions continued, underpinned by strong institutional inflows, particularly in the banking and cement sectors. Cement sales, which gained significant traction in August, are expected to surpass earnings projections. This sustained optimism helped propel the index to an intraday high of 150,323, before closing at 149,770 points.

The rally was driven by the performance of key index heavyweights, including Bank Al-Habib, United Bank, Lucky Cement, Meezan Bank, and Engro Fertiliser, which collectively contributed 1,306 points to the index’s rise. Market participation remained robust, with total traded volume increasing to 809 million shares and a traded value of Rs48.43bn. WorldCall Telecom (WTL) led the volume chart, with 52.32 million shares traded.

Ahsan Mehanti of Arif Habib Corporation attributed the record close to positive investor sentiment, spurred by Fitch and Moody’s favourable economic outlooks. Fitch has projected a growth rate of 3.5pc for FY27, while the government’s plans to reduce circular debt by Rs2.6 trillion, along with strong export data and cement dispatches, played a catalytic role in boosting market confidence.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the KSE-100 sustained its bullish momentum, briefly breaching the 150,000 mark before closing higher, reflecting a renewed sense of optimism among investors.

On the earnings front, Systems Ltd reported a 59pc year-on-year (YoY) increase in earnings for 1HCY25, with earnings per share (EPS) of Rs3.52, driven by growth in IT exports and improved margins. Similarly, Pakistan State Oil posted a 33pc YoY rise in its FY25 EPS, underscoring resilience in the energy sector amid global oil volatility.

Meanwhile, the cement sector saw consolidation trends, with Kot Addu Power and Fauji Foundation’s joint bid to acquire Pharaon Investment’s 84.06pc stake in ACPL signalling ongoing sector reshuffling.

The market also benefited from macroeconomic developments, including Fitch and Moody’s upgraded outlook on Pakistan’s banking sector, which boosted sentiment.

Published in Dawn, August 20th, 2025