The equity market surged to a fresh all-time high on Friday, crossing the 154,000 mark for the first time, driven by strong liquidity inflows and sector-specific rallies. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 154,277.19 points, gaining 1,611.47 points, or 1.06%, compared to the previous close of 152,665.72.
During the session, the index touched an intraday high of 154,511.31 points, up 1,845.59 points or 1.21%, while the day’s low stood at 153,129.78 points, still 464.06 points, or 0.3%, higher than Thursday’s close. Market analysts attributed the rally to sustained mutual fund activity and focused buying in selective stocks.
According to independent investment and economic analyst AAH Soomro, net buying was concentrated in sectors such as cement and power, with HUBC showing strong performance on account of a healthy payout, while the cement sector benefitted from expectations of rerating after the acquisition of one player.
Adding to market optimism, Pakistan’s foreign exchange reserves continued their upward trajectory. Data from the State Bank of Pakistan (SBP) showed reserves rising by $28 million to $14.302 billion during the week ending August 29, marking the fourth consecutive weekly increase.
Overall, the country’s liquid reserves stood at $19.66 billion, with commercial banks’ holdings climbing to $5.357 billion. The SBP’s reserves are now sufficient to cover 2.62 months of imports, supported by strong remittance inflows and steady foreign exchange purchases by the central bank.
Meanwhile, the government successfully raised Rs491 billion in a recent Treasury bill auction, surpassing its target of Rs400 billion but falling short of maturities worth Rs824 billion.
Yields on most T-bills remained stable, reflecting investor expectations of no immediate change in interest rates amid persistent inflationary concerns following flash floods. The steady macroeconomic backdrop, coupled with robust liquidity, helped fuel the PSX’s record-breaking performance.
