Karachi, August 16, 2025 – Arif Habib Limited has shared its latest market assessment, providing an outlook for the Pakistan Stock Exchange (PSX) for the upcoming week beginning August 18, 2025.
Analysts believe that the ongoing corporate results season will keep investor interest strong, with select scrips likely to remain in the spotlight. In addition, potential developments on the long-standing power circular debt issue could further boost market sentiment and set the tone for next week’s PSX outlook.
The brokerage noted that the benchmark KSE-100 Index is currently trading at a forward price-to-earnings ratio (PER) of 7.45x for 2026, against a 10-year average of 8.0x. This suggests an attractive valuation, complemented by a dividend yield of around 6.8%, compared with the historical average of 6.5%. According to market strategists, this valuation backdrop enhances the medium-term outlook for PSX investors.
During the past week, which was shortened to four trading sessions due to the Independence Day holiday, the KSE-100 index rallied to an all-time high of 147,005 points on Tuesday. The surge was primarily fueled by stronger-than-expected corporate earnings. Adding to investor confidence, Moody’s upgraded Pakistan’s sovereign rating from Caa2 to Caa1, highlighting fiscal reforms, improved external buffers, and continued progress under the IMF program.
Sector-wise updates also influenced trading patterns. Oil production rose by 0.8% week-on-week to 59,604 barrels per day, while auto sales showed a 28% year-on-year improvement despite a monthly decline. Meanwhile, the Pakistani rupee appreciated slightly by 0.14% against the U.S. dollar.
Overall, the market closed at 146,492 points, up 1,109 points or 0.8% on a weekly basis, setting a firm ground for next week’s PSX outlook.