KARACHI: Shrugging off concerns over widespread flooding across Punjab and a looming super flood in Sindh, equity investors continued their buying spree on Tuesday, driving the Pakistan Stock Exchange (PSX) to a fresh all-time high.

The benchmark KSE-100 index surged close to the 151,000-point barrier, extending its recovery for a third consecutive session.

The index rallied as much as 1,105 points during intraday trading before settling at 150,975 — up 1,004 points or 0.67pc. Key support came from Engro Holdings, Fauji Fertiliser, Engro Fertiliser, Bank Al-Habib, and Bank Alfalah, which collectively contributed 938 points to the gains, according to Topline Securities.

Ahsan Mehanti of Arif Habib Corporation attributed the bullish close to a combination of upbeat economic indicators. These included a rise in foreign exchange reserves, lower consumer inflation at 3pc year-on-year, a 7pc year-on-year increase in oil sales for August, and anticipated government spending on post-flood reconstruction.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market’s northbound trajectory remained intact, with investor focus shifting towards the fertiliser sector. This was driven by expectations of a government-backed farmer relief package in the wake of crop damage from recent floods.

He added that stronger demand for urea and DAP, aimed at restoring soil fertility, may help fertiliser manufacturers clear excess inventories built up in previous quarters.

On the macroeconomic front, Pakistan’s trade deficit narrowed to $2.86bn in August, down from $3.1bn in July. This development suggests reduced import pressure and relatively stable exports — a positive signal for external sector stability.

Despite the bullish sentiment, market activity weakened. Total trading volume declined by 8.62pc to 1.08bn shares, while traded value dropped 9.05pc to Rs44.24bn. The Bank of Punjab once again dominated the volume charts for a third straight day, with 174.3 million shares traded — highlighting robust investor participation as the market eyes another record-breaking session.

Analysts said the 150,000 mark has now emerged as a strong support level, underpinned by narrowing trade deficits and growing optimism over relief measures for the agriculture sector.

With momentum building and liquidity remaining healthy, the PSX appears poised to scale fresh highs in the coming sessions.

Published in Dawn, September 3rd, 2025