Karachi, July 26, 2025 – The Pakistan Stock Exchange (PSX) experienced a slight slowdown in its weekly momentum as the market’s positive run-rate lost steam during the week ended July 25, 2025.
According to a report by Topline Securities Limited, the benchmark KSE-100 index of the PSX still posted a weekly gain of 0.44%. However, the rise was more muted compared to previous weeks, signaling a cautious approach by investors. The declining pace in the weekly uptrend was attributed to the start of the corporate result season, which often brings market volatility, and the rollover of July futures contracts into the next month, which added selling pressure.
Several major developments shaped market sentiment. Notably, S&P Global Ratings upgraded Pakistan’s credit rating to B- with a stable outlook, up from CCC+, marking the first such improvement in three years. This came in response to improving financial indicators and macroeconomic stability. Additionally, the government raised Rs409 billion in a T-bill auction amid a massive participation of Rs1,058 billion, while yields dropped by 10 to 39 basis points, indicating investor confidence in short-term instruments.
Despite these positives, market participation remained relatively subdued. The average daily traded volume at the PSX fell by 17% week-on-week to 635 million shares, while the average daily traded value dropped by 20% to Rs28.6 billion. Analysts suggest that this softening in activity reflects investor hesitation ahead of earnings announcements and profit-taking amid recent highs.
In summary, while the PSX continued its upward trajectory, the weekly slowdown in market enthusiasm highlights a shift in investor mood. The coming weeks will be crucial in determining whether this is a temporary pause or the start of a broader trend reversal in PSX weekly performance.