The Pakistan Stock Exchange (PSX) extended its bullish momentum on Thursday, fueled by strong corporate earnings and robust performance in the cement, banking, and pharmaceutical sectors. The KSE-100 Index surged 800.09 points (0.71%), reaching an intraday high of 114,142.52, as investor confidence strengthened amid solid earnings reports. Cement and banking stocks led the rally, while other sectors remained range-bound. The market recorded a low of 113,525.89, but sustained buying interest in key sectors kept the upward trend intact. Market Gains Fueled by Strong Corporate Results Ahfaz Mustafa, CEO of Ismail Iqbal Securities, attributed the PSX’s upward movement to stellar corporate results. “The market is trading up on strong earnings from cement, banking, and pharma companies,” he said, adding that large trading volumes in these sectors played a key role in pushing the index higher. Meanwhile, in the latest Market Treasury Bill (T-bill) auction on Wednesday, the government raised Rs259 billion, falling short of the Rs350 billion target. This shortfall, along with an unmet Rs371 billion maturity amount, signaled liquidity constraints and cautious investor sentiment ahead of the upcoming IMF (International Monetary Fund) review. Rising T-Bill Yields Indicate Market Caution Yields on T-bills increased across all tenors, reflecting concerns over inflation and future interest rate expectations. The three-month T-bill yield rose by 3 basis points (bps) to 11.83%. The six-month yield climbed 17 bps to 11.67%. The 12-month yield increased 6 bps to 11.65%. Despite a downward trend in inflation, investors remain watchful of Pakistan’s economic outlook and upcoming monetary policy decisions. Banking Sector Leads the Charge Investor sentiment received a major boost from Habib Bank Limited (HBL) and United Bank Limited (UBL), which reported strong financial results for Q4 CY24. HBL posted a consolidated profit after tax (PAT) of Rs14.6 billion (EPS: Rs9.8), compared to Rs15.9 billion (EPS: Rs10.1) in the same period last year. Net interest income (NII) stood at Rs60.3 billion, reflecting a 6% YoY and 5% QoQ decline due to lower asset yields. Non-markup income, however, surged by 76% YoY and 69% QoQ, driven by strong fee income and gains on securities. UBL delivered even stronger results, reporting a consolidated PAT of Rs26 billion (EPS: Rs21.3), nearly double from Rs13.5 billion a year ago. NII surged 84% YoY and 32% QoQ to Rs68.2 billion, benefiting from a strong investment portfolio and increased loan volumes. Non-markup income rose by 158% YoY and 64% QoQ, primarily due to elevated gains on securities, though fee income declined by 39% QoQ. The banking sector’s stellar performance further fueled investor confidence, drawing increased buying interest in financial stocks, which helped lift the overall market sentiment. PSX Closes in Positive Territory Continuing its earnings-driven rally, the PSX closed in positive territory on Wednesday, with the KSE-100 Index adding 253.96 points (0.22%), closing at 113,342.44, up from 113,088.48 points in the previous session. The market hit an intraday high of 114,029.76, reflecting continued investor interest in select sectors, while the lowest level recorded was 113,060.26. With corporate earnings driving investor optimism, the PSX remains on a bullish trajectory, supported by strong sectoral performance and increased trading activity in key industries. However, with ongoing economic challenges and global market trends playing a role, market participants remain cautiously optimistic about the weeks ahead.