KARACHI, August 2, 2025 – The Pakistan Stock Exchange (PSX) is likely to maintain its positive trading momentum in the upcoming week, with investor sentiment fueled by the ongoing corporate results season and recent economic developments.
Trading at the PSX this week remained largely earnings-driven, as market participants closely monitored June quarter announcements from listed companies.
The KSE-100 Index posted a strong weekly gain of 1,828 points, closing at an all-time high of 141,035 points, up 1.3% on a week-on-week basis. Early in the week, trading at PSX stayed range-bound as investors awaited key results. However, positive news regarding a new trade deal between Pakistan and the United States lifted sentiment and revived buying interest in the latter part of the week.
The agreement signed with the U.S. is expected to reduce tariffs and encourage bilateral investment, which could support further bullish trading at the PSX. On the monetary side, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 11%, against expectations of a rate cut. Meanwhile, July inflation (CPI) came in at 4.1%, higher than June’s 3.2%.
Average daily trading volume stood at 562 million shares, while daily trading value reached PKR 36 billion, indicating strong investor participation. Additionally, the PKR appreciated slightly by 0.3% WoW, closing at 282.72 against the USD.
In terms of macro indicators, SBP’s reserves dropped by USD 153 million to USD 14.3 billion, and FBR’s tax collection exceeded targets by collecting PKR 754 billion in July 2025. Petroleum price adjustments also took place, with MS decreasing by PKR 7.54/litre and HSD increasing by PKR 1.48/litre.
Looking ahead, the PSX is trading at a forward Price-to-Earnings ratio of 7.2x for 2026, compared to its 10-year average of 8.0x. The current dividend yield of ~7.0% makes it attractive for investors. Market analysts remain optimistic, with top stock picks including OGDC, PPL, MEBL, NBP, MCB, and PSO.