The Pakistan Stock Exchange (PSX) surged to a new all-time high on Friday, fueled by a wave of bullish investor sentiment. The benchmark KSE-100 index reached an intraday peak of 140,585.38 points, a remarkable gain of 1,919.89 points (1.38%). This follows a similarly strong Thursday session where the index closed at 138,665.49 points, up 2,285.53 points (1.68%).

The rally is primarily attributed to two key factors: anticipation of strong corporate earnings announcements scheduled for next week and growing expectations of a reduction in interest rates by the State Bank of Pakistan (SBP). Experts say that anticipated strong financial results and annual payouts further catalyzed the bullish activity.

Investor confidence has been boosted by recent statements from Finance Minister Muhammad Aurangzeb, who indicated on Monday that there is room for an interest rate cut, although the final decision rests with the SBP. While the SBP maintained the benchmark interest rate at 11% in its last meeting, citing inflationary risks and geopolitical uncertainties, the expectation of a future rate cut remains strong. The date for the next Monetary Policy Committee meeting is yet to be announced but is expected by the end of July.

Positive economic indicators further fuelled the bullish sentiment. The SBP reported a rise in foreign exchange reserves by $23 million to $14.526 billion in the week ending July 11, exceeding the IMF’s target of $13.9 billion.