Karachi, June 28, 2025 – The Pakistan Stock Exchange’s benchmark KSE-100 index delivered a strong performance this week, surging by 3.63% on a weekly basis, as easing geopolitical tensions lifted investor confidence.
The positive momentum was primarily driven by the much-anticipated ceasefire agreement between Iran and Israel, which brought relief to regional markets and encouraged fresh buying ahead of the fiscal year-end.
According to a report by Topline Securities Limited, the KSE-100 index closed the week with a significant gain of 3.63%, reflecting bullish sentiment across the board. Investors, wary of escalating tensions in the Middle East, welcomed the ceasefire announcement, prompting a sharp uptick in both local and foreign buying activity. This surge was particularly notable as the market prepares to close the financial year on a high note.
During the weekly session, several major developments further supported market performance. One of the key positives was China’s readiness to reschedule $1.8 billion in Pakistani debt over the next two years—providing breathing room for external accounts. Additionally, the government conducted a successful T-bill auction, witnessing a participation of Rs2,299 billion. Although it raised only Rs323 billion, yields declined by 5 to 9 basis points, signaling renewed investor confidence in Pakistan’s short-term fiscal outlook.
However, the week was not without concerns. The State Bank of Pakistan (SBP) reported a sharp decline of over $2.6 billion in foreign exchange reserves for the week ended June 20, 2025. This drop was primarily attributed to large-scale external debt repayments. Nevertheless, market participants remain optimistic as a $3 billion inflow is expected in the current week, which could significantly improve SBP’s position in the coming weekly reserves report.
Market activity remained robust throughout the weekly session, with average daily traded volume standing at 736 million shares and the average daily value reaching Rs31.3 billion. The rising trend in the KSE-100 index reflects growing optimism in the market, aided by stabilizing regional dynamics and expectations of improved macroeconomic indicators in the weeks ahead.
Overall, this weekly rally in the KSE-100 index signals investor optimism heading into the final days of the fiscal year, with hopes pinned on continued political calm and fiscal support.