Pakistan stocks extend record-breaking rally on strong corporate earnings, institutional buying

The Pakistan Stock Exchange’s benchmark KSE-100 index extended its bullish run on Thursday, surging 558 points to close at 145,647—a new record high—buoyed by robust corporate earnings, institutional inflows, and positive sentiment over U.S. trade flexibility toward Pakistan.

The rally, continuing the momentum from previous sessions, was fueled by anticipation of a further interest rate cut by the State Bank of Pakistan amid inflation remaining within manageable limits.

“The market is responding to strong corporate results and expectations of monetary easing,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

Profit-taking from foreign investors was noted on the back of rising share prices, as the market witnessed $5.8 million in net selling from foreign investors since the start of August.

Since January, the Pakistan Stock Exchange has delivered a 26% return on investment, reflecting renewed investor optimism and resilience in the face of global uncertainties.

Index-heavyweights including Pakistan Petroleum Ltd. (PPL), Habib Bank Ltd. (HBL), Engro Fertilizers (EFERT), Systems Ltd. (SYS), and Oil and Gas Development Company (OGDC) were the major drivers of the rally.

Market participation remained strong, with total traded volume climbing to 711 million shares and a traded value of PKR 55.6 billion. PPL dominated the volume charts, with 33 million shares changing hands during the session.

Analysts say the current trajectory signals continued investor confidence, supported by a stable economic outlook and favorable policy signals from both domestic and international fronts.