LAHORE: The Pakistan Stock Exchange (PSX) climbed to a record high on Thursday, with its benchmark KSE-100 index closing above 168,000 points for the first time, driven by substantial gains in the banking sector and renewed investor optimism.
The index surged 2,849 points, or 1.72%, to finish at 168,489.63, extending a rally that has lifted the market more than 105% over the past year. Market capitalization reached $69.9 billion, underscoring the scale of the advance.
Trading activity was robust, with 1.57 billion shares traded and turnover hitting Rs70.1 billion. The Bank of Punjab topped the volume board, with 148 million shares changing hands.
Brokerage firm K-Trade Securities described it as “a strong banking day,” noting that major lenders, including Meezan Bank, United Bank, Bank Al Habib, Habib Bank, and National Bank of Pakistan, together contributed 1,827 points to the index.
Waqas Ghani, research head at JS Global, said the uptrend reflected a combination of improving fundamentals and liquidity.
“The market rally is being fueled by improving macro-economic stability, strong corporate earnings momentum, and renewed investor confidence. Liquidity remains ample, supporting broad-based participation across key sectors,” he told Pakistan TV Digital.
Dr Yasir Mahmood, CEO of Yasir Mahmood Securities, pointed to geopolitics as an additional driver: “Positive macro-economic and geopolitical developments, including the Pakistan-Saudi defence cooperation agreement, have reinforced investor sentiment.
The government’s circular-debt reduction plan for the energy sector and the recent improvement in Pakistan-United States relations also lifted confidence.”
Topline Securities said in a note that “stocks closed on a strong upward trajectory largely fueled by continued aggressive buying from mutual funds.” However, it added that profit-taking in Lucky Cement, Hub Power, and Systems Limited trimmed 192 points from overall gains.
Analysts believe the surge highlights renewed foreign interest in Pakistan’s equities, progress on reforms, and strengthening international partnerships. These factors are positioning the KSE-100 as one of the world’s strongest-performing indices in 2025.