The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index crossed the 47,000 mark on Thursday for the first time in 21 months after gaining almost 400 points.

The market saw an increase of 421.96 points at 12:36am and eventually closed at 47,076.99 points after gaining 394.4 points.

According to Arif Habib Corporation, the KSE-100 index had crossed the 47,000 mark after 21 months. The stock market had last achieved this milestone on November 8, 2021, it added.

The corporation further said the market gained 5,751 points (+13.9pc) since the government reached a standby agreement with the International Monetary Fund (IMF) on June 30.

Arif Habib Commodities CEO Ahsan Mehanti told Dawn.com that stocks closed higher in the earnings season amid speculations ahead of the key policy rate announcement by the State Bank of Pakistan (SBP) this week and the likely smooth transition to caretaker set-up next week.

“Higher banking spreads, strong rupee and FX reserves nearing $8.7bn played a catalyst role in bullish close,” he added.

Meanwhile, Topline Securities CEO Mohammed Sohail stated that the PSX’s recovery was ongoing, with the benchmark index gaining 13pc this month after a gap of three years.

He attributed the surge to an increase in investor confidence, driven by expectations of a smooth transition of power to the “new government”, along with the disbursement of the IMF tranche and inflows from friendly countries.

According to Amir Shehzad, Director of First National Equities Limited, one significant reason for the rally was a rumour circulating regarding Saudi Arabia’s alleged plan to create a $8bn fund for investing in Pakistan.

He noted that the banking sector had played a major role in the current upward rally, and there was optimism for good dividend payouts in the months ahead.

Shehzad also mentioned that another positive factor contributing to market sentiment was China’s decision to roll over a $2.4bn loan without increasing its markup.