The Pakistan Stock Exchange rally continued its upward journey on Thursday, closing at a new all-time high fueled by growing investor confidence.

Strong corporate earnings and stable macroeconomic signals are pushing momentum, despite cautious trends in the fixed income market.

The KSE-100 Index gained 558.64 points, or 0.39%, ending the day at 145,647.13, setting a fresh record close. During intraday trade, it hit a high of 146,081.02, up 0.68%, before retreating slightly.

Market optimism is driven by better economic indicators and upbeat corporate performance. “Continued optimism for improving macros and improving corporate results are driving sentiment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

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In Wednesday’s T-bills auction, the government raised Rs370 billion, falling short of its Rs400 billion target. Yields climbed across all tenors, signaling caution among investors. The one-month yield rose 5bps, while the 12-month jumped 30bps to nearly 11%.

Despite rising yields, the State Bank of Pakistan held its policy rate steady at 11%, following earlier aggressive cuts from a record 22%. Inflation worries have slowed expectations of further rate cuts.

The government plans to borrow Rs6.175 trillion between August and October, reflecting increased dependence on local funding. It aims to raise Rs3.675 trillion via T-bills and Rs2.5 trillion through PIBs.

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Meanwhile, MCB Bank declared a second interim dividend of Rs9 per share, bringing its total H1 payout to 180%. The bank posted a Rs27.31 billion profit after tax, with earnings per share at Rs23.04, slightly lower than last year.

Just a day earlier, the Pakistan Stock Exchange rally had surged 2,051.33 points, closing at 145,088.49, marking another historic high.