KARACHI: The Pakistan Stock Exchange (PSX) extended its record-setting rally for the sixth consecutive session on Friday, with the benchmark KSE100 index closing at an alltime high above the 131,000 mark.

According to Topline Securities Ltd, the KSE100 index largely remained in the positive zone throughout the trading session and gained 1,262.41 points, or 0.97pc, to settle at 131,949.07. The market`s buoyancy was supported by institutional buying, reflecting fresh allocations into equity funds, as indicated by data from the National Clearing Company.

The top positive contributors to the index were United Bank Ltd, HabibBank, Systems Ltd, Bank Al Habib, MCB Bank, National Bank, andMeezan Bank, which together added 1,289 points.Ahsan Mehanti of Arif Habib Corporation said stocks closed at a new all-time high as investors responded positively to the rupee`s recovery andthe State Bank`s foreign exchange reserves rising to $19.87bn amid improved inflows and political stability. He noted that falling government bond yields and investor speculation ahead of major earnings announcements next week also played a catalytic role in the market`s advance.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, echoed the sentiment, attributing the rally to improving macroeconomic indicators such as higher reserves, a stable currency, and easing inflation.

He said institutional buying-particularly in the banking and energy sectors-was driven by expectations of monetary easing and optimism ahead of the upcoming results season.