The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) soared by 3,134.63 points on Thursday, closing at an all-time high of 108,238.96 points. The 2.90 percent increase over the previous close marks the third-highest single-day gain in the index’s history, with the top gain also recorded earlier this year.

According to brokerage firm Arif Habib Limited, market activity surged to a 19-year high, with a traded value exceeding Rs. 63 billion ($227 million). This is the highest activity in the regular market since April 17, 2006, the firm noted.

The rally comes on the back of positive economic indicators, including a significant drop in Pakistan’s annual inflation rate to 4.9 percent in November, the lowest level since 2017. Additionally, the country’s trade deficit narrowed by 19 percent year-over-year to $1.59 billion, raising expectations of a robust current account surplus and boosting investor confidence. The rally also follows the PSX crossing the 100,000-point milestone for the first time just a week ago.

Experts attributed the 68 percent rally in the index this calendar year to aggressive buying by mutual funds, particularly in the latter half of the year. “The primary driver behind the index’s performance has been sustained mutual fund activity,” experts added.

A total of 1.64 billion shares were traded during the day, slightly lower than the 1.74 billion shares traded the previous day. However, the value of traded shares rose to Rs. 63.1 billion compared to Rs. 50.41 billion on Tuesday.

Out of 472 companies that traded on the stock market, 306 recorded gains, 129 sustained losses, and 37 remained unchanged.