Karachi, August 23, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) posted an impressive weekly gain of over 3,000 points, driven by strong investor confidence and healthy economic indicators.
From August 18 to August 22, the KSE-100 index extended its bullish momentum, reaching a record high of 150,591 points during midweek before closing at 149,493 points. This reflects a weekly increase of 3,001 points (+2.05% WoW), supported by robust buying activity and the ongoing corporate results season.
Analysts attribute the rally to multiple positive factors. The Current Account Deficit (CAD) narrowed to USD 254 million in July 2025, marking a significant 37% year-on-year improvement. Meanwhile, the State Bank of Pakistan (SBP) successfully raised PKR 527 billion in its weekly treasury bills auction, surpassing its target of PKR 450 billion, reflecting strong market participation.
In the government’s Ijarah Sukuk auction, PKR 229 billion was raised against a target of PKR 200 billion, with attractive cut-off rentals ranging between 10.44% and 12.00%.
On the energy side, power generation declined by 5% YoY to 14,123 GWh, largely due to seasonal demand, but the cost of production dropped by 13% YoY, averaging PKR 7.78/KWh.
Foreign exchange reserves rose to USD 19.6 billion, while the Pakistani Rupee (PKR) appreciated marginally by 0.05% WoW, closing at 281.92 against the USD.
By week’s end, the market stood at 149,235 points, marking an overall gain of 2,743 points (1.9% WoW). Analysts believe the KSE-100 index could maintain positive momentum as more companies release earnings, supported by a forward price-to-earnings ratio (PER) of 7.45x (2026), offering a solid dividend yield of 6.8%.