RECORDER REPORT

KARACHI: The Pakistan Stock Exchange extended its historic rally on Tuesday, with the KSE-100 Index soaring to yet another record high, fueled by bullish sentiment, encouraging macroeconomic indicators, and renewed investor confidence. The benchmark index climbed 985 points, or 0.69 percent, to close at an unprecedented 143,037.17, compared to the previous session’s close of 142,052.65. During intraday trade, the index touched a peak of 143,281.35, underscoring the market’s strong upward momentum.

Meanwhile, the BRIndex100 settled at 14,601.02, up 106.75 points or 0.74 percent, with a total volume of 430.41 million shares. The BRIndex30 also advanced, closing at 41,527.19, reflecting a gain of 204.84 points or 0.5 percent, on a turnover of 252.39 million shares.

According to Topline Securities, the rally was underpinned by robust local and foreign inflows, alongside widespread participation across key sectors. Investor sentiment received a significant boost following the government’s disclosure of a nine-year low fiscal deficit of 5.38 percent of GDP for FY25, well below both the government’s and IMF’s 5.6 percent projections. This fiscal achievement was driven by a 36 percent year-on-year increase in revenues, which notably outpaced an 18 percent rise in expenditures — a development seen as a sign of growing confidence in Pakistan’s economic management.

The brokerage emphasized that these positive macroeconomic indicators are reinforcing hopes of stability and paving the way for stronger earnings, setting the tone for sustained bullish momentum in the days ahead.

As a result of the continued buying interest, the market capitalization at the PSX rose by over Rs114 billion, increasing from Rs16.995 trillion a day earlier to Rs17.109 trillion at Tuesday’s close.

Although volumes slightly declined, market activity remained healthy. The ready market recorded a total turnover of 549.7 million shares, down from 666.3 million shares in the previous session. The traded value stood at Rs37.04 billion, compared to Rs42.92 billion a day earlier, reflecting continued investor engagement across a broad range of sectors.

The day’s most actively traded stock was Fauji Cement, with 31.7 million shares exchanged. The stock closed at Rs49.51, registering a strong gain. It was followed by First Dawood Properties, which saw 24.8 million shares traded and closed sharply higher at Rs6.98. Invest Bank came in third, with 18.1 million shares changing hands, ending the session at Rs7.77.

Among the top gainers, PIA Holding Company Limited (B) led with a remarkable increase of Rs2,683.28, closing at Rs29,516.03. Nestlé Pakistan Limited followed, gaining Rs790.76 to close at Rs8,698.32. In contrast, Sapphire Textile Mills Limited posted the largest loss of the day, falling Rs66.92 to close at Rs1,315.96, while Al-Abbas Sugar Mills Limited dropped Rs60.57, ending at Rs1,010.41.

Market breadth remained broadly positive. Of the 484 companies traded in the ready market, 239 advanced, 217 declined, and 28 remained unchanged, reinforcing the bullish tone of the session.

Sectoral performance showed mixed trends. The BR Automobile Assembler Index closed at 23,170.97, up 61.79 points or 0.27 percent, on a turnover of 3.05 million shares. The BR Cement Index surged 79.97 points or 0.71 percent to close at 11,282.52, with a robust 80.63 million shares traded.

The BR Commercial Banks Index ended at 41,161.59, gaining 165.44 points or 0.4 percent, while 28.76 million shares changed hands. The day’s strongest sectoral performance came from the BR Power Generation and Distribution Index, which jumped 358.36 points or 1.61 percent to close at 22,607.88, on 31.62 million shares.

However, the BR Oil and Gas Index closed lower by 85.38 points, or 0.66 percent, at 12,812.75, with 39.29 million shares traded. Similarly, the BR Technology and Communication Index slipped 13.18 points or 0.4 percent, ending at 3,289.84, on a turnover of 50.60 million shares.

Commenting on the rally, JS Global’s Muhammad Hasan Athar noted that the KSE-100’s record close was driven by a combination of strong corporate earnings prospects, rising demand in the cement sector, and major fiscal reforms — notably, the Rs780 billion reduction in power sector arrears. He also pointed to improved liquidity, a rising primary surplus, and positive developments such as OGDC’s Rs7.7 billion interest income, all of which contributed to an increasingly constructive market outlook.

Athar added that barring any unforeseen external shocks, the rally is expected to continue, supported by sectoral strength and improving macro fundamentals.