According to Topline Securities, the rally was largely fuelled by news of a ‘landmark’ reciprocal tariff deal with the United States, under which Pakistan’s export tariffs have been slashed to 19 per cent, down from 29 per cent earlier.

Additionally, reports suggesting that the government will make a payment to clear circular debt in the coming weeks by obtaining Rs1.25tn from banks, provided stimulus to the market.

The energy sector led the charge, with OGDC, PPL, HUBC, and PSO collectively adding 1,355 points to the index, as they are likely beneficiaries of the anticipated debt clearance.

In terms of trading activity, OGDC (Rs9.19 billion), PSO (Rs8.60 billion), and PPL (Rs7.72 billion) were the top performers by value. Overall, 607 million shares were traded with a total value of Rs50.5 billion.

Commenting on the day’s rally, Ahsan Mehanti of Arif Habib Corp said, “Stocks closed at a new all-time high as investors weighed CPI inflation at just 4.1 per cent year-on-year for July 2025. The combination of a tariff deal with the US, circular debt restructuring approval worth Rs1.275 trillion, and a cut in fuel prices, which is expected to ease inflation, served as key catalysts for bullish activity.”