After a brief pause, the Pakistan Stock Exchange (PSX) resumed its record-breaking rally on Thursday, with the benchmark KSE-100 index closing at an all-time high, driven by strong investor confidence.

The index jumped 1,205.36 points, or 0.91%, to settle at 133,782.35, just short of its intraday peak.

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, the market witnessed robust activity amid improved sentiment.

The surge was supported by record remittances of $38 billion in FY25 — a 27% increase year-on-year — and Pakistan’s successful re-entry into Middle Eastern debt markets, securing $1 billion in Islamic financing from a Dubai Islamic Bank-led consortium, with backing from the Asian Development Bank.

The banking sector led the charge, with broad-based buying in major stocks.

Meezan Bank, MCB Bank, United Bank, Bank Al Habib, Habib Bank, Bank Alfalah and Habib Metropolitan Bank collectively added 686 points to the index.

On the corporate front, Kohinoor Cement surged 8.5pc after approving the formation of Ultra Properties (Pvt) Ltd, a wholly-owned subsidiary aimed at entering the real estate sector. The company also announced a 5:1 share split.

Trading activity remained robust, with 940 million shares changing hands and total turnover recorded at Rs36bn.

The Bank of Punjab led the volumes with 155.3 million shares traded.

Topline Securities noted that after a two-day breather, the bulls returned to the PSX in full force, driven by investor optimism ahead of the corporate earnings season, which begins on Friday.

Anticipation of strong quarterly results spurred buying across key sectors.

In the textile segment, Nishat Mills Ltd stood out as a notable performer.

Ahsan Mehanti of Arif Habib Corporation said the record close was driven by expectations of positive earnings announcements, declining long-term government bond yields signalling possible monetary easing, and hopes of relief in industrial tariffs.

He also cited a 4.67pc year-on-year increase in exports during FY25 as a key positive.

Analysts see further upside potential, with technical support now seen at 130,000 and 127,000.

Strong macroeconomic fundamentals and earnings optimism are expected to sustain market momentum in the near term.