PSX Reaches Record High with 3.2% Weekly Gain
The PSX's record high is a testament to the country's economic resilience, with the current account surplus and foreign exchange reserves indicating a positive trend. The rally is expected to continue, driven by strong corporate earnings expectations and local mutual fund activity.
The Pakistan Stock Exchange (PSX) saw a significant surge, with the KSE-100 index reaching a record close of 138,597, driven by a 4,298-point increase, or 3.2% week-on-week gain, fueled by broad-based buying and positive macro developments.
The rally was driven by strong corporate earnings expectations, foreign interest, and local mutual fund activity. Macroeconomic indicators showed resilience, with a current account surplus of $328m in June, the highest in 22 years. Foreign Direct Investment (FDI) declined to $207m in June, but the State Bank's foreign exchange reserves rose by $23m to $14.5bn.
Sectoral updates pointed to recovery, with Large-Scale Manufacturing (LSM) output rising 2.3% year-on-year in May. Auto-financing showed consistent improvement, increasing 20% year-on-year to Rs277bn in June. The government unveiled the National Tariff Policy 2025-30 to rationalise tariffs and bolster export competitiveness. Key sector performers included Fauji Fertiliser Company (FFC) and United Bank Limited (UBL).
The market's upward momentum continued throughout the week, with the index fluctuating before closing at a record high on Friday. Analysts attributed the rally to stabilizing macroeconomic indicators and investor optimism, citing the IMF's positive comments on Pakistan's economic recovery.