The Pakistan Stock Exchange (PSX) concluded another robust week on Friday, with the benchmark KSE-100 index posting a cumulative gain of 2,350 points over five sessions, settling at a new all-time high of 134,299.77 points.

This marked the third consecutive week of upward momentum, driven by strong corporate earnings, continued institutional inflows, and improved macroeconomic indicators. The index moved within a 2,605-point band during the week, touching a low of 132,326 and a high of 134,931.

Investor activity remained upbeat on Friday as well, with the index adding 517.42 points or 0.39% in a single session. Trading volumes for the day reached 765.1 million shares, with a total traded value of Rs40.2 billion.

Market capitalisation increased by Rs377 billion over the week, reaching Rs16,288 billion, while 4.73 billion shares were traded in total.

According to analysts at Topline Securities, the strong rally was supported by increased equity allocations by mutual funds and robust earnings announcements. Data from the National Clearing Company confirmed a shift from fixed income to equities, further boosting sentiment.

UBL played a leading role in driving the market, announcing a 99% year-on-year surge in its 1HCY25 earnings per share to Rs26.07, alongside a higher-than-expected dividend of Rs19 per share. The stock rose 2.4% on Friday alone, significantly contributing to the index's gains. Hub Power Company (+1.6%) and Millat Tractors (+2.76%) were also among the major contributors, collectively lifting the index by over 300 points.

In contrast, pressure was observed in select banking names, with Bank AL Habib (-3.3%), MCB Bank (-1.04%) and HBL (-1.22%) weighing on the gains.

Ahsan Mehanti, MD at Arif Habib Corp, noted that investor sentiment remained buoyant amid rising foreign exchange reserves, which touched $20 billion, and upbeat auto sales data showing a 38% YoY growth for FY25. He added that revisions in development spending—now set at Rs1.05 trillion for FY25—and record remittances of $38.3 billion were key catalysts for the current market high.

Out of 477 listed companies traded on Friday, 220 closed higher, 228 declined and 29 remained unchanged. Market breadth remained slightly positive, with 55 advancing and 45 declining stocks driving index movement.

The Bank of Punjab led trading volumes with 94.1 million shares, followed by Aisha Steel Mills (25.1m shares) and Kohinoor Spinning Mills (23.6m shares). Foreign investors, however, remained net sellers, offloading equities worth Rs350 million.

Looking ahead, Arif Habib Limited’s (AHL) weekly market report suggested that the KSE-100 could find support around 132,000, with a possible test of 136,000 in the upcoming sessions, should positive momentum continue.