The benchmark index touched its all-time high closing of
138,665 points on Thursday, but closed the week at 138,597 points on Friday
July 18, 2025.
The market participation declined, with average daily traded
volumes falling by 19.5%WoW to 763 million shares, down from 948 million shares
a week ago.
On the macroeconomic front, for the first time in 14 years,
Pakistan posted a current account surplus, of US$2.1 billion as against a
deficit of US$2.1 billion during the same period last year.
IT exports for FY25 increased by 18%YoY to US$3.8 billion,
from US$3.2 billion in FY24.
The LSM index witnessed an increase of 2.3%YoY in May 2025.
As regards sectoral developments, fertilizer offtakes
witnessed an improvement for second consecutive month, with urea sales rising
by 21%YoY during June 2025.
Auto financing for June 2025 was reported at PKR277 billion,
up 1.98%MoM, marking an increase for the seventh consecutive month.
Foreign exchange reserves held by State Bank of Pakistan (SBP)
rose by US$23 million to US$14.5 billion as of July 17, 2025. Despite this
increase PKR depreciated against the greenback closing the week at PKR284.87/US$.
Other major news flow during the week included: 1) Telecom
sector welcomed ADB’s call for lower taxes, 2) Pakistan-Afghanistan trade hit
US$1.0 billion in 1HCY25, 3) Banking sector deposits rose to PKR35.498 trillion
at end June 2025, 4) China expressed it readiness to deepen ties with Pakistan
in agriculture, industry and mining, and 5) Cabinet okayed 15% hike in EOBI
pensions.
Vanaspati & Allied Industries, Property, Miscellaneous,
Fertilizer, and Inv.Banks/ Inv. Cos/ Securities.Cos were amongst the top
performing sectors, while Jute, Woollen, Textile Spinning, Engineering, and Leather
& Tanneries were among the laggards.
Major selling was recorded by Banks/ DFI with a net sell of
US$34.0 million. Individuals absorbed most of the selling with a net buy of
US$22.3 million.
The top performing scrips of the week were: PSEL, ABL, JVDC,
FFC, and PIBTL, while laggards included: SEARL, KOHC, BNWM, NATF, and INIL.
According to AKD Securities, Pakistan Stock Exchange is
anticipated to maintain a positive trend in the coming weeks, driven by
expectations of strong corporate earnings.
The benchmark index is anticipated to sustain its upward
trajectory, with a target of 165,215 points by end December 2025.
The market will be primarily driven by strong earnings in
Fertilizers, sustained ROEs in Banks, and improving cash flow of E&Ps and
OMCs, benefiting from falling interest rates and economic stability.
The top picks of the brokerage house include: OGDC, PPL,
PSO, FFC, ENGROH, MCB, HBL, FCCL, KOHC, INDU, and SYS.
