The Pakistan Stock Exchange (PSX) continued its record-breaking performance on Thursday, with the benchmark KSE-100 Index crossing the 119,000 mark for the first time before settling at a new high of 118,769.77. The trading session was characterized by bullish momentum, which propelled the index to an intra-day peak of 119,421.81.

Despite the strong start, profit-taking in the final hours of trading trimmed some of the market gains. Ultimately, the KSE-100 Index closed with an increase of 795.75 points, or 0.67%.

Key sectors such as oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries saw significant buying activity. Major index-heavy stocks, including HUBCO, NRL, SNGPL, SSGC, MARI, OGDC, and PPL, traded in the green.

The positive momentum in the market was fueled by encouraging news regarding the resolution of circular debt in the energy sector and growing anticipation of a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF).

Samiullah Tariq, Head of Research at Pak Kuwait Investment Company (Private) Limited, noted that the buying rally was driven by improvements in cash flow within the energy chain and the potential deal with the IMF.

Echoing this sentiment, Mohammed Sohail, CEO of Topline Securities, remarked, “The index reached another high of 119k, led by local institutional buying. There is optimism that the IMF staff-level deal will be finalized soon, and government efforts to address old circular debt will enhance cash flows for emerging sector companies.”

On Wednesday, the KSE-100 Index had already gained nearly 1,000 points, closing at an all-time high of 117,974.02.

In contrast, international markets faced challenges, with Asian shares struggling due to weakness in Chinese markets, despite a rally on Wall Street. Investor sentiment was somewhat buoyed by the prospect of potential rate cuts from the Federal Reserve later this year.