KARACHI: Amid ongoing economic challenges, including the aftermath of devastating floods, Pakistan’s stock market extended its bullish momentum for a seventh consecutive session on Monday.

This remarkable rally saw the benchmark KSE 100 Index surpass the 156,000-point mark for the first time in the history of the Pakistan Stock Exchange (PSX), driven by strong corporate earnings reports.

According to Topline Securities Ltd, the market began the week on a strong note, with the KSE 100 index reaching an all-time high of 156,199 points. Investor optimism fuelled an impressive intraday rally, as the index gained as much as 1,922 points before closing at 156,087 points, a rise of 1,810 points or 1.17 per cent. The rally was primarily supported by better-than-expected corporate earnings and strong liquidity from local institutional investors, propelling the index into uncharted territory.

Investor confidence remained robust, with market heavyweights attracting significant flows, further bolstering the positive sentiment. Key contributors to the rally included Engro Holdings, Hub Power, Lucky Cement, Mari Energy, and Sui Northern Gas Pipelines, which collectively added 1,144 points to the index. On the other hand, profit-taking in stocks like United Bank, Systems Ltd, and Fauji Cement led to a 191-point dip.

AHL report estimates flood damage, primarily to agriculture, at $1.4bn

A notable highlight of the session was Engro Holdings, whose impressive earnings report sparked renewed investor interest, pushing its stock higher and contributing 405 points to the index’s ascent.

Market participation remained strong, with total trading volume rising by 4.43pc to 1.12 billion shares. The total traded value also increased by 3.91pc, reaching Rs 62.2bn. K-Electric led the volume chart, with 93.7 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, commented that the PSX continued its unstoppable rally, surpassing the 156,000 barrier. He highlighted that blue-chip stocks in sectors such as fertilisers, power, cement, exploration and production (E&P), and oil marketing companies (OMCs) attracted fresh buying momentum. Hubco was in the spotlight after its Friday briefing revealed that BYD had already sold over 2,000 cars in six months, with more than 500 pre-orders for its Shark model. This news drove Hubco’s stock up by 5.78pc, reaching Rs 197.

However, AHL Research issued a cautionary note, warning that while the economy is showing resilience, the damage caused by recent floods is estimated at Rs409bn ($1.4bn), with agriculture bearing the brunt of the losses. Nearly three-fourths of the total damage is attributed to the agriculture sector, underscoring the vulnerability of Pakistan’s economy to climate-related shocks.

Despite these challenges, the bullish trend in the stock market shows no signs of slowing down. With momentum still strong, the PSX is expected to continue pushing for fresh highs in the coming sessions. The support base for the market has now solidified at the 154,000-point level, providing a solid foundation for further gains.

Published in Dawn, September 9th, 2025