Fertiliser drove optimism at the Pakistan Stock Exchange (PSX) on Thursday as shares surged more than 1,700 points, crossing the 97,000 barrier for the first time a bearish spell the day before. The benchmark KSE-100 index climbed 1499.74 points, 1.57 per cent, to stand at 97,046.19 from the previous close of 95,546.45 points at 1:24pm. Finally, the index closed at 97,328.39 points, up by 1781.94 points or 1.86pc, from the previous close. Awais Ashraf, director research at AKD Securities, said that the benchmark KSE-100 was rallying on the performance of the fertiliser sector. He added that the rally was particularly driven by the unlocking of Fauji Fertiliser Company (FFC) and Fauji Fertiliser Bin Qasim Limited (FFBL) dividends which overshadowed political concerns. Leading fertiliser shares included Arif Habib Corp, Engro Corporation, Engro Fertilisers, Fatima Fertiliser, Fauji Fertiliser and Fauji Fertiliser Bin Qasim. “While individuals remain cautious due to prevailing political uncertainty, institutions are actively building equity portfolios, encouraged by declining fixed-income yields and growing confidence in the macroeconomic outlook,” Ashraf highlighted. Mohammed Sohail, chief executive of Topline Securities, echoed the same sentiments. He said today’s rally was led by fertiliser stocks. Yousuf M. Farooq, director research at Chase Securities, said, “The market rally today has been driven by lower PIB [Pakistan Investment Bonds] yields, as funds, insurance companies, and individual investors gradually shift from fixed income instruments to equity.” He observed that the market had opened “with some jitters following yesterday’s pause, due to ongoing political noise and concerns about the situation in Islamabad , which continues to pose a significant risk”. “Investors should assess their liquidity needs before investing in stocks and ensure they are investing in companies they understand,” he recommended. Regarding factors contributing to the bullish momentum, Farooq highlighted that the country’s macroeconomic indicators had improved — with inflation expected to be between 5pc to 6pc in November, which has also raised market expectations of another rate cut. “Mutual funds are proactively calling investors to encourage withdrawals from cash funds, while banks are discouraging PLS (Profit and Loss Sharing) accounts, potentially redirecting some of these flows into the stock market,” Farooq said. , analysts had observed that stocks were no longer as cheap as they were last year but remained reasonably priced, propelled by stabilising macroeconomic conditions. However, they still warn that major risks to the momentum included “political instability, macroeconomic shocks, excessive government spending, and a deteriorating current account position”.