KARACHI: In a striking contrast to growing concerns over flood-related risks to economic growth, the Pakistan Stock Exchange (PSX) extended its record-setting rally on Thursday, with the benchmark KSE-100 index closing at yet another all-time high with its fifth straight gain. Investors shrugged off looming macroeconomic challenges, including the potential impact of widespread monsoon flooding, as they continued to hunt for value in select sectors amid robust liquidity and institutional support.
The index gained 464 points, or 0.30 per cent, to close at 152,666 — maintaining its upward trajectory amid strong institutional interest and positive economic signals. The session opened on a robust note, with investors actively accumulating positions in fertiliser, cement, technology, and exploration and production (E&P) stocks.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the rally showed “no brakes at PSX” as the index surged to new peaks with persistent buying momentum. The market’s strong performance was further buoyed by the government’s treasury bill auction, which raised Rs491bn against a Rs400bn target, indicating abundant liquidity in the financial system. Yields remained largely stable, with only the one-month tenor easing by 14 basis points.
Despite the bullish close, investor participation showed a slight decline. Trading volume dropped 8.52pc to 954.32 million shares, while the traded value fell 10.24pc to Rs46.05bn. The Bank of Punjab led the volume chart with nearly 99.5 million shares traded, reflecting strong investor conviction as the index approaches the psychological barrier of 153,000 points.
Ahsan Mehanti of Arif Habib Corporation said the market closed at a new all-time high on the back of positive economic indicators, including encouraging sales data for fertiliser, oil, and cement sectors in August. He added that ongoing government efforts to address circular debt in the power sector, a stable rupee, and improved cotton production data for FY25 also contributed to investor optimism.
According to Topline Securities Ltd, the index climbed as much as 1,209 points intraday before paring gains to close higher by 464 points. Major contributors to the index’s rise included Fauji Fertiliser, Lucky Cement, Systems Ltd, Mari Petroleum, and Askari Bank, which collectively added 484 points.
Analysts noted that with 150,000 now established as a strong support level, the KSE-100 is charting into uncharted territory, fuelled by strong liquidity and unwavering momentum. The bullish rally shows no immediate signs of fatigue, keeping investor sentiment firmly in the positive zone.
Published in Dawn, September 5th, 2025
