ISLAMABAD: Pakistan’s benchmark stock index extended its bullish run and closed at an all-time high on Thursday, with analysts attributing the surge to rising investor confidence over Pakistan’s new tariff deal with the US and economic gains such as surging exports and currency stabilization. 

The KSE-100 Index touched an intraday high of 146,081.02 before settling at 145,647.13, up by 558.64 points or 0.39 percent from the previous close of 145,088.49.

Energy, fertilizer and banking stocks led the gains, with Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers Limited (EFERT), Oil and Gas Development Company Limited (OGDC) and Systems Limited (SYS) adding 738 points collectively, as per the Pakistan Stock Exchange’s data. 

Ahsan Mehanti, chief executive officer of Arif Habib Commodities, said the stocks closed on a new record high as investors weighed the 17 percent year-on-year surge in exports data for July this year, the first month of the new fiscal year. 

“Rupee stability, surging global crude oil prices, surging global equities and expected positive outcome of favorable US-Pak tariff deal played catalyst role in bullish close at PSX,” Mehanti told Arab News.

The stock market rally takes place as Pakistan shows signs of macroeconomic recovery following the IMF Executive Board’s approval of a new $7 billion loan program in September 2024. The program, which succeeded a short-term Stand-By Arrangement, focuses on structural reforms, energy sector overhauls, and fiscal consolidation.

Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump.

The country’s economic outlook has also been bolstered by the rupee rebounding sharply in recent weeks, buoyed by steady remittance inflows and an aggressive crackdown on the dollar black market launched in mid-2024. Foreign exchange reserves have crossed $11.3 billion, according to central bank data, their highest level in nearly three years.

Karachi-based top brokerage firm Topline Securities said the bullish momentum from previous sessions carried through on Thursday, fueled by strong institutional inflows. These inflows came particularly from local mutual funds, it added. 

“Market participation remained vibrant, with total traded volume reaching 711 million shares and a robust traded value of Rs55.6 billion,” it continued.

“PPL led the volumes chart, with 33 million shares exchanging hands during the session.”