Bulls continued to dominate the trade floor on Friday as shares at the Pakistan Stock Exchange (PSX) climbed more than 500 points, marking a new record. The benchmark KSE-100 index increased by 532.44 points, or 0.57 per cent, to stand at 94,724.33 points from the previous close of 94,191.89 points at 11:11am. At 12:06pm, the index climbed 768.01 points, or 0.82pc, to stand at 94,959.90 points. Finally, the index closed at 94,763.64, up by 571.75 points from the previous close. Mohammed Sohail, chief executive of Topline Securities, credited the bull run to “non-stop buying by local funds after [a] sharp fall in interest rate”. Moreover, he highlighted that the International Monetary Fund (IMF) staff visit also showed that the economy was stabilising. Awais Ashraf, director research at AKD Securities, said, “The stay order granted to banks regarding the implementation of the ADR tax has fuelled the KSE-100 index, which was driven by monetary easing and improvements in the cash flows of companies affected by circular debt.” He noted that equities were expected to outperform, supported by an attractive trading price-to-earning ratio of 4.2x, “especially as returns on fixed income instruments and commodities continue to decline”. Yousuf M. Farooq, director of research at Chase Securities, attributed the gains to flows. Yesterday, he had explained that as returns decline in fixed-income mutual funds, investors were increasingly moving cash into equities. He reiterated his previous remarks that macroeconomic indicators were moving towards stability, noting that circular debt accumulation had halted and bike sales were on the rise, in addition to sales of cars and fast-moving consumer goods (FMCGs). Farooq highlighted that the property market was also “showing signs of activity, and there is a sense of urgency among buyers fearing they might miss out”. When asked about how the current rally compared to previous bull runs in terms of participation, Farooq noted, “Number of participants has increased because of online account openings. Equity mutual funds as percentage of total AUM [assets under management] are fairly small and conversions are happening.” “The total interest rate decline has been larger this cycle as the peak of interest rates was higher. Rate hikes are likely to continue,” he stated, adding that stock prices were depressed across the board before this rally. “Rate decline has been sharp and quick. Sentiment has changed fairly quickly,” he added. Yesterday, the stock market had crossed yet another all-time high . Topline Securities Ltd had the trend to growing economic optimism, fuelled by reports that the International Monetary Fund (IMF) expressed no concerns over Pakistan’s progress in meeting revenue collection targets. As a result, fears of an imminent and new taxation measures have eased.