Karachi, July 12, 2025 — The Pakistan Stock Exchange (PSX) ended the week on a bullish note, posting a 2% gain amid improving sentiments driven by positive macroeconomic indicators, international deals, and upbeat corporate performance.
During the trading week from July 7 to July 11, the benchmark KSE-100 index surged from 131,949.06 to 134,299.76, adding 2,351 points. According to market analysts at Arif Habib Limited, the PSX rally was powered by rising investor sentiments, as both domestic and international developments supported market optimism.
Among the week’s major highlights, the signing of a trade and tariff framework between Pakistan and the United States boosted investor confidence. The agreement, concluded ahead of the July 9 deadline set by President Trump, is expected to safeguard market access for Pakistani exports and attract fresh U.S. investment.
Investor sentiments at the PSX were further lifted by a USD 2 billion investment agreement signed between Pakistan and Azerbaijan during the 17th ECO Summit. The deal is likely to be finalized during the Azerbaijani President’s upcoming visit, adding to hopes of increased foreign inflows.
Other confidence-building events included record-high workers’ remittances of over USD 38 billion in FY25, a 27% increase year-on-year, and a significant production boost reported by OGDCL at its Rajian-05 well. Additionally, the auto sector experienced a revival, with sales rising 43% YoY to 148,000 units, supported by pre-GST hike buying activity.
The PSX saw key sectoral gains from Commercial Banks (1,329 points), Cement (304 points), Auto Assemblers (150 points), Textiles (147 points), and Pharmaceuticals (124 points). On the flip side, E&Ps, Technology, and Fertilizer sectors contributed minor declines.
Scrip-wise, UBL (+417 points), MEBL (+297), MCB (+171), HMB (+150), and BAFL (+148) lifted the index, while BAHL, EFERT, MARI, and PPL were among the top negative contributors.
Despite foreign selling of USD 5.76 million this week, lower than last week’s USD 15.33 million, local investors kept the momentum alive. Mutual Funds bought USD 30.91 million worth of shares, while Individuals added USD 14.08 million.
Average trading volume dropped slightly to 947.8 million shares (down 2% WoW), while average daily value declined 6.3% to USD 136.5 million.
Looking ahead, analysts believe sentiments at the PSX will remain largely positive, though some profit-taking could emerge. With the index trading at a forward P/E of 6.8x and offering a solid 7.4% dividend yield, strong sentiments are likely to continue drawing investors toward Pakistani equities.