PSX benchmark index up 1.31%WoW

Pakistan Stock Exchange (PSX) benchmark index closed at an all-time high of 141,035 points, up 1,828 points or 1.31%WoW on Friday, August 01, 2025.

The positive momentum was driven by conclusion of trade deal between the United States and Pakistan including focus on developing Pakistan’s oil reserves, coupled with officials commenting that government is all set to disburse the PKR1.3 trillion amount, secured from commercial banks, by next week.

This triggered gains in the E&P and OMC sectors. The said development overshadowed the subdued performance of initial days over monetary policy committee (MPC) announcement uncertainty, in which MPC maintained a status quo on policy rate over inflation concerns.

Despite the index’s upward momentum, market participation declined, with average daily traded volumes falling 11.6%WoW to 562 million shares, compared to 635 million shares a week ago.

On the macroeconomic front, US announced reduced tariffs on Pakistani exports at 19%, down from the previously imposed 29%.

Headline inflation for July 25 inched up to 4.1%YoY, as compared to 3.2%YoY a month ago.

Pakistani Rupee appreciated for a second consecutive week by 0.26%WoW, supported by government efforts to curb down on the illicit Fx market.

Foreign exchange reserves by State Bank of Pakistan (SBP) declined by US$153 million to US$14.3 billion as of Jul 25, 2025.

Other major news flow during the week included: 1) FBR collected PKR755 billion against a target of PKR748 billion, 2) Yarn, grey cloth, raw cotton removed from EFS purview, 3) SBP bought US$6.7 billion from the interbank market in 10MFY25, 4) GoP imposed PKR238/ mmbtu levy on gas for captive power plants, and 5) GoP slashed petrol price but hiked high-speed diesel.

Jute, E&P, and OMC were amongst the top performing sectors, while Vanaspati & allied industries, Woollen, and Property were among the laggards.

Major selling was recorded by Banks and Foreigners with a net sell of US$5.0 million and US$4.5 million, respectively. Mutual funds absorbed most of the selling with a net buy of US$10.9 million.

Top performing scrips of the week were: BWCL, OGDC, SYS, PPL, and PSO, while laggards included: EPCL, BNWM, JVDC, PSEL, and MEHT.

According to AKD Securities, PSX is expected to remain positive in the coming weeks, with further developments over circular debt expected to drive the market along with upcoming corporate results.

The benchmark index is anticipated to remain on upward trajectory, with a target of 165,215 points by end December 2025.

Market will be primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

Top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, HBL, FCCL, KOHC, INDU, and SYS.

PSX benchmark index up 1.6%WoW

The benchmark index of Pakistan Stock Exchange (PSX) experienced a marginally positive week, largely influenced by corporate earnings announcements. During the week, the index gained 1,762 points or 1.6%WoW to close at 112,085 points on Friday, February 14, 2025.

Trading volumes inched higher as compared to last week to 525.1 million shares (up 21.0%WoW). In MSCI's February 2025 index review, one company was added, and another was upgraded to the MSCI Frontier Markets Index from small cap. Additionally, three securities were added and three were removed from the MSCI Small Cap Index. On the macro front, several important data points came in during the week, including remittances for January 2025 were reported at US$3.0 billion, up 25%YoY.

PIB auction witnessed yields declining by 25bps for the 2-year paper as well, while remaining flat for 3, 5 and 10 year tenures.

Foreign exchange reserves held by State Bank of Pakistan (SBP) declined by US$252 million to US$11.2 billion as of February 07, 2025.

Urea sales dropped 27%YoY and DAP sales dropped 8%YoY during January 2025. Automobile sales increased by 31%YoY to 19,372, given New Year effect being the primary catalyst behind the sales increase alongside OEM’s providing discounts/installment offers on selective variants.

Other major news flow during the week included: 1) Three out of five key IMF conditions were met, 2) 1HFY25 budget deficit recorded at 1.2% of GDP, 3) Pakistan requested rescheduling of US$3.4 billion Chinese debt, 4) IMF appreciated ongoing reforms in judiciary, 5) Prime Minister Shahbaz met UAE president in Abu Dhabi to further strengthen bilateral ties.

Jute, Refinery, and Woollen were amongst the top performing sectors, while top laggards included Leasing, Vanaspati & Allied Industries, and Textile Weaving.

Major selling was recorded by Individuals, Foreigners and Mutual Funds with a net sell of US$17.5 million. Banks absorbed most of the selling with a net buy of US$9.7 million.

Top performing scrips of the week were: BOP, LUCK, ATRL, PSEL, and MLCF, while laggards included: PGLC, MEHT, BAHL, KTML, and PABC.

According to AKD Securities, the market outlook remains positive, with the market expected to largely being driven by specific scrips and sectors, following any trigger or corporate results.

Over the medium term, the benchmark index is anticipated to sustain its upward momentum through CY25, primarily driven by the strong profitability of fertilizer companies, higher sustainable ROEs of banks and improving cash flows of E&Ps and OMCs, benefitting from falling interest rates.