KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking trend for the second consecutive session, buoyed by easing geopolitical tensions and a more favourable economic outlook. This encouraged investors to engage in value-hunting, pushing the benchmark index to new highs above 121,500 on Wednesday.

Topline Securities stated that the bullish momentum was fuelled by robust buying from local and corporate institutions, as indicated by data from the National Clearing Company of Pakistan Ltd. This positive sentiment propelled the benchmark index to an impressive intraday gain of 1,431 points, closing at an all-time high of 121,798.87, representing a 1,348-point increase or 1.12pc day-on-day.The key drivers of the rally included heavyweight stocks such as National Bank, Bank Al-Habib, Systems Ltd, Lucky Cement, and MCB Bank, which collectivelycontributed 586 points to the index`s upward trajectory.

Ahsan Mehanti from Arif Habib Corporation reportedthatstocksatthe PSX closed at an all-timehigh, driven by a broad rally as investors reacted to the government`s efforts to eliminate additional sales tax, provide relief on provincial power tariffs, and the PrimeMinister`s hints at success in negotiations with the IMF regarding the budget.

He added that investors weighed the government`s efforts to provide relief in the budget. Additionally,the increase in sales of petrol, oil, and lubricants (POL) and cement exports, along with the Asian Development Bank (ADB) financing package, contributed to a positive investment outlook.

Ali Najib, Deputy Head of Trading at AHL, said investor sentiment remained buoyant throughout the session, with broadbased buying observed across key sectors.

`Market participants continued to build positions in anticipation of the upcoming federal budget following media reports indicating the International Monetary Fund`s (IMF) pre-approval of the budget framework a development perceived as a significant vote of confidence,` he observed.

Market participation remained strong, with trading volume rising 22.90pc to 710.59 million shares and the value traded surging 31.26pc to Rs35.21 billion day-on-day.