The Pakistan Stock Exchange (PSX) kicked off the week on a bullish note, smashing past all previous records as strong corporate earnings and progress on power sector reforms lifted investor sentiment.

The benchmark KSE-100 Index closed at an all-time high of 146,929.84 points, up 1,547.05 points, or 1.06%, from Friday’s close. During the session, the index even touched an intraday peak of 147,005.17 before mild profit-taking pulled it back slightly.

“Stellar corporate results, improving sentiment and liquidity are the driving force behind the rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities, adding that the market will closely watch upcoming earnings and circular debt developments.

While macroeconomic indicators painted a mixed picture, reforms in the power sector gave the market a major boost. The government slashed circular debt by Rs780 billion to Rs1.6 trillion and unveiled a five-year privatisation plan for 24 state-owned companies, with PIA among the first 10 slated for sale.

Textile exports also impressed, surging 33.7% year-on-year in July to $1.69 billion, while remittances rose 7% YoY to $3.2 billion despite a monthly dip. However, the trade deficit widened by 44% YoY to $2.8 billion due to higher imports, and the State Bank’s reserves slipped to $14.2 billion after debt repayments.

Last week, the market soared 3.08% to a record close of 145,383 points, with Thursday marking a fresh high before Friday’s mild pullback. With strong earnings season momentum and key policy shifts, analysts believe the PSX’s bullish wave may have more room to run.