Karachi, April 19, 2025 – The Pakistan Stock Exchange (PSX) continued its upward trajectory during the week ending April 18, 2025, as the benchmark KSE-100 index surged by a substantial 2,462 points, closing at 117,316 points.
This marks a 2.1% gain on a week-on-week basis, fueled by improving macroeconomic indicators and renewed investor confidence across multiple sectors.
Analysts at Arif Habib Limited noted that the KSE-100 index remained firmly in the green throughout the week, consistently trading above the 117,000 points mark. The positive sentiment was largely driven by the announcement of a record-breaking current account surplus of USD 1.2 billion for March 2025—the highest monthly surplus in Pakistan’s history. Additionally, progress in addressing the power sector’s circular debt, bolstered by a PKR 1.275 trillion financing package from leading banks, further uplifted market expectations and enhanced the outlook for structural reforms.
Despite the bullish momentum, some economic indicators reflected ongoing challenges. Large-Scale Manufacturing (LSM) declined by 3.5% year-on-year in February 2025, indicating persistent pressure in the industrial sector. Meanwhile, Foreign Direct Investment (FDI) recorded a net inflow of USD 26 million in March, while the State Bank of Pakistan’s reserves dipped by USD 127 million, settling at USD 10.6 billion.
Sector-wise, the biggest points contribution came from Banks (1,736 points), followed by Cement (566), Automobile (184), Power (152), and Technology (53). Conversely, Fertilizer (-288 points), Exploration and Production (-172), and Engineering (-13) dragged the index slightly.
Among individual stocks, UBL led the rally with a massive contribution of 1,537 points, followed by LUCK (429), HUBC (160), NBP (149), and SAZEW (121). On the downside, FFC (-316), MARI (-231), and HBL (-65) were the major laggards.
Foreign investors turned net sellers, offloading equities worth USD 4.01 million—reversing last week’s net buying of USD 9.92 million. The bulk of the selling occurred in miscellaneous sectors and banking. On the domestic front, Banks and individual investors remained net buyers with inflows of USD 69 million and USD 21.9 million, respectively.
Looking ahead, the PSX is expected to maintain its positive momentum, backed by strong corporate earnings and favorable economic developments. With the result season underway, market activity is expected to pick up, especially in fundamentally strong stocks. The PSX remains attractively valued at a price-to-earnings ratio of 6.3x, well below its 10-year average of 8.0x, offering investors both capital appreciation and solid dividend yields of ~8.0%.