Karachi, July 19, 2025 – The Pakistan Stock Exchange (PSX) ended the week on a positive note, with the benchmark KSE-100 index climbing 3.2% on a week-on-week (WoW) basis during the trading week from July 14 to July 18. The index continued its upward momentum, buoyed by strong buying interest from local institutional investors, particularly mutual funds.
According to a market report released by Topline Securities Limited, the rally in the KSE-100 index was driven by improved investor confidence following key economic developments. One of the major positive triggers was the announcement of a current account surplus of $328 million for June 2025, which pushed the cumulative surplus for the full fiscal year (FY25) to $2.1 billion. This marks a significant turnaround compared to the $2.07 billion deficit recorded in FY24.
Additionally, the Foreign Direct Investment (FDI) figure for June 2025 stood at $207 million. While slightly lower than May’s $217 million, the sustained FDI inflows added to market optimism. Another supportive factor was the successful Pakistan Investment Bond (PIB) auction, where the government raised Rs342 billion against a target of Rs300 billion. The auction also witnessed a decline in cut-off yields ranging between 30 to 54 basis points, reflecting improved investor sentiment toward fixed income instruments.
The KSE-100 index remained vibrant throughout the week as economic data and liquidity in the system encouraged bullish sentiment. Average daily trading volume stood at 763 million shares, while the average daily traded value clocked in at Rs35.89 billion, equivalent to $126 million.
Market participants believe that the continued surplus in the current account and lower bond yields may support further gains in the KSE-100 index in the coming sessions. Analysts, however, advise investors to monitor global economic developments, oil prices, and geopolitical cues, which could impact market sentiment.
Overall, the KSE-100 index closed the week strong, maintaining its position above key psychological levels, and signaling potential for further upside if macroeconomic fundamentals remain supportive. The index performance this week reflects growing investor confidence in the country’s improving economic outlook.