The bulls continued their charge on Tuesday, propelling the benchmark KSE-100 Index to yet another historic high as investor confidence remained firmly intact on the back of strong macroeconomic signals and robust inflows.

The index soared to an intraday peak of 1,229 points before closing at 143,037 — up 985 points or 0.69% from the previous session.

According to a market report by Topline Securities, the surge was driven by broad-based sectoral rallies and healthy participation from both local and foreign investors.

The upbeat mood was further fuelled by Pakistan’s better-than-expected fiscal performance, with the country recording a 9-year low fiscal deficit of 5.38% in FY25.

This improvement came as revenues grew by 36% year-on-year, far outpacing the 18% increase in expenditures — surpassing even the government and IMF’s projection of a 5.6% deficit-to-GDP ratio.

“The market is clearly reflecting growing optimism over fiscal discipline, macroeconomic stability, and a stronger corporate earnings outlook,” the brokerage noted, adding that the strong momentum could continue in upcoming sessions.

Major index movers included FFC, UBL, MCB, HUBC, and EFERT, which collectively contributed 679 points to the day’s gain.

Meanwhile, PPL, BAHL, and HBL were the main laggards, pulling the index down by 142 points combined.

Investor participation also remained elevated, with 548 million shares traded and total turnover reaching Rs37 billion. FCCL led the volumes with 31 million shares changing hands.

Ahsan Mehanti, Director at Arif Habib Corp, attributed the market’s strong performance to a positive earnings outlook and encouraging government signals.

“The approval to resume subsidies for the fully funded remittances scheme, which will support rupee stability, along with NEPRA’s hints at possible negative industrial tariff adjustments, and speculation over government moves to address circular debt in the power sector — all helped fuel today’s bullish close,” Mehanti said.

On Monday, the PSX closed on a bullish note. Strong corporate developments, expectations of robust earnings across key sectors, and sustained investor optimism drove the rally.