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