KARACHI: The record-setting spree entered its fourth straight session on Tuesday as the Pakistan Stock Exchange (PSX) maintained its bullish spell, crossing yet another milestone of 185,000 despite volatility early in the session.

Deceleration in inflation has fuelled hopes of another cut in the State Bank of Pakistan’s policy rate, which was slashed in a surprise move mid-last month, triggering a shift of liquidity from other avenues to the equity market, driving a bull run yielding robust returns.

According to Topline Securities Ltd, the index concluded the session on a strong note, hitting a fresh all-time high of 185,062.11 points, up 2,653.87 points or 1.45 per cent. The benchmark index remained volatile throughout the day, reaching an intraday high of 185,481.45 points and a low of 181,182.07 points.

Despite the fluctuations, the market maintained a firm bullish tone, supported by sustained buying interest, particularly from mutual funds, as indicated by NCCPL data from the previous trading day.

KSE index’s surge continues on robust buying from institutions

The brokerage house noted that the market capitalisation surged to a record Rs20.7 trillion.

Heavyweight stocks played a pivotal role in driving the rally. Key contributors included MCB Bank, United Bank, Meezan Bank, Habib Bank, and Lucky Cement, which collectively added 1,899 points to the index’s overall advance.

Market participation remained robust, with volume staying above the one-billion mark, though it fell 5.65pc to 1.3 billion shares over the previous session. However, the traded value increased 9.25pc to Rs85.1bn, underscoring strong investor engagement and positive market sentiment.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said a strong bullish momentum was sustained by institutional-led buying, underpinned by improving macroeconomic indicators, easing inflation expectations, stable interest rates, and a constructive corporate earnings outlook.

Moreover, fresh allocations at the start of CY26 further reinforced liquidity-driven demand, adding momentum to the ongoing rally, which has just posted a gain of over 11,000 points, up 6.32pc in the first four sessions of CY26.

On the macro front, central government debt rose by 0.7pc month-on-month to Rs77.5tr as of Nov 20, 2025, reflecting a 10.2pc year-on-year increase compared to Rs70.4tr in November 2024.

From a sectoral perspective, oil production increased by 0.9 percent week-on-week to 64,709 barrels of oil per day. Gas production rebounded to 2,836 mmcfd, supported by higher output from Mari, Uch, Qadirpur, and Sui, following earlier disruptions due to annual turnaround at Fauji Fertiliser’s Plant-II and subdued power sector demand.

Analysts say the 185,000 level has been successfully achieved at the PSX, with momentum showing no signs of exhaustion. Bulls remain aggressive, signalling further upside as the strong bullish trend stays firmly intact.

On the downside, 181,000 now stands as the immediate support level in the event of any corrective move from current levels.

Published in Dawn, January 7th, 2026