The equity market closed the week on a historic note as the Pakistan Stock Exchange rally pushed the KSE-100 Index to an all-time high, crossing the 154,000 milestone for the very first time.

On Friday, the benchmark index settled at 154,277.19 points, gaining 1,611.47 points, or 1.06%, from the previous close of 152,665.72. During intraday trading, the index surged as high as 154,511.31, marking an impressive increase of 1,845.59 points, before retreating slightly to close just below that level. Even at its lowest point of the day, the index remained in positive territory, standing at 153,129.78 points.

Market analysts credit sustained liquidity flows and targeted rallies in key sectors for fuelling this momentum. According to investment and economic analyst AAH Soomro, “Net buying continues based on mutual funds buying, with overall positive liquidity chasing limited stocks. HUBC and cement have seen a good rally due to HUBC’s strong payout and the potential rerating of the cement sector following a recent acquisition.”

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Adding to investor confidence, Pakistan’s foreign exchange reserves maintained their upward trend. The State Bank of Pakistan reported that its reserves rose by $28 million, reaching $14.302 billion during the week ending August 29. This marks the fourth consecutive weekly increase, pushing total liquid reserves to $19.66 billion. Commercial banks’ reserves also inched up to $5.357 billion.

With current SBP holdings sufficient to cover 2.62 months of imports, analysts suggest the improvement stems from strong remittance inflows and the central bank’s consistent foreign exchange purchases.

In the debt market, treasury bill yields stayed largely unchanged, reflecting expectations of stable interest rates amid concerns over inflationary pressures from recent flash floods. The government successfully raised Rs491 billion through T-bills, exceeding its Rs400 billion target but falling short of maturities worth Rs824 billion.

The one-month yield slipped by 15 basis points to 10.75%, while three-month, six-month, and 12-month yields held steady at 10.85% and 11%, respectively. Meanwhile, Rs36.7 billion was secured through a floating-rate Pakistan Investment Bond auction.