KARACHI: The Pakistan Stock Exchange (PSX) on Wednesday continued its bullish trajectory, reaching an all-time high as the benchmark KSE-100 index briefly surpassed the 150,000 mark for the first time. Despite the chaos brought on by heavy rains in Karachi, which caused widespread disruptions and a citywide public holiday, the PSX defied the storm and carved a historic milestone.

The KSE-100 index closed at 150,591, up by 820.25 points or 0.55 per cent. This record close not only signifies resilience amid short-term disruptions but also highlights the growing investor confidence in Pakistan’s economic and corporate fundamentals. As the city struggled with flooding, the stock market surged, setting a new high.

On the macroeconomic front, Pakistan’s current account recorded a deficit of $254 million in July, an improvement from the $348m deficit in the same month last year. However, it marked a decline from the $335m surplus posted in June, reflecting softer external flows after recent highs.

Further buoying investor sentiment, Moody’s Ratings upgraded the local and foreign-currency long-term deposit ratings of five leading banks — Allied Bank, Habib Bank, MCB Bank, National Bank, and United Bank — from Caa2 to Caa1. This upgrade, which reflects stronger capital buffers and improved operating conditions, underscores the resilience of the banking sector against macroeconomic challenges.

Moody’s bank upgrade and strong corporate earnings fuel overnight rally

The positive developments in the banking sector added momentum to the stock market rally. Stocks of major banks dominated the day’s gains, contributing 421 points to the KSE-100 index. This surge in banking stocks signals investor optimism regarding the sector’s prospects.

Market participation, however, remained lower compared to the previous session, with a total volume of 664.4 million shares traded and a turnover of Rs40.6 billion. Bank of Punjab emerged as the volume leader with 52.3 million shares exchanged.

Looking ahead, some consolidation or market correction cannot be ruled out. In the event of a pullback, the 150,000 level is likely to serve as the first support, followed by the 148,500 level.

According to Topline Securities, the market showed no signs of fatigue, with the index reaching an intraday high of 1,490 points before settling at 150,591, up 820 points (+0.55%). The rally was driven by better-than-expected corporate earnings and strong liquidity support from local institutions, propelling the benchmark to unprecedented heights. The momentum was particularly fuelled by major index heavyweights such as SYS, BAHL, NBP, MCB, and BAFL, which collectively contributed 503 points to the index’s rise.

Ahsan Mehanti of Arif Habib Corporation noted that the record close followed the Moody’s upgrade of Pakistan’s banking sector and an optimistic outlook on the country’s current account deficit, which stood at $284 million. Strong remittances, rising exports, and rupee stability acted as key catalysts for the market’s performance.

The PSX’s historic close at 150,591 marks a significant chapter in its journey, as the market continues to show resilience amid challenging conditions and growing investor confidence in Pakistan’s economic recovery.

Published in Dawn, August 21st, 2025