KARACHI: The Pakistan Stock Exchange (PSX) extended its record-setting streak for the fourth consecutive session on Wednesday, as the benchmark KSE-100 index crossed the psychological barrier of 130,000 points on the back of aggressive institutional buying and investor optimism.

The index surged by 2,144 points, or 1.67pc, to close at an all-time high of 130,344, after hitting an intraday peak of 2,346 points. According to Topline Securities Ltd, the bullish momentum was fuelled by value-hunting amid renewed fiscal-year optimism and limited appeal in fixed-income instruments, prompting a rotation into equities in search of higher returns.

Banks spearheaded the rally, with heavyweight stocks such as United Bank, MCB Bank, Bank Al-Habib, Meezan Bank, Habib Bank and National Bank collectively contributing 1,285 points to the index. The sector attracted strong institutional interest driven by expectations of monetary easing, robust financial results, and attractive dividend yields.

The pharmaceutical sector also saw a resurgence, with The Searle Company hitting its upper lock. Citi Pharma Ltd, Haleon Pakistan Ltd, and Abbott Laboratories (Pakistan) Ltd drew notable investor interest.

Overall trading activity remained vibrant. Volumes surpassed 1.02 billion shares, while the total traded value reached Rs49.17bn. Worldcall Telecom Ltd led the volume chart with 89.8 million shares changing hands.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the rally to strengthening investor confidence amid improving macroeconomic indicators, declining default risk, a stable rupee, and growing foreign inflows. He said attractive valuations, expectations of strong corporate earnings in the upcoming results season, and the government’s pro-market stance are positioning the PSX as a favourable investment destination in the region.

With the index in uncharted territory, market watchers are now turning to corporate earnings and macroeconomic cues to gauge whether the bulls will maintain momentum or take a breather. Support is now seen around the 128,500 level, suggesting the potential for further record highs in the near term.

Published in Dawn, July 3rd, 2025