PSX benchmark index up 1.8%WoW

Pakistan Stock Exchange (PSX) continued upward momentum during the week, driven by expectations of strong earnings. The benchmark Index was up 2,351 points or 1.8%WoW, closing the week at 134,300 points on Friday July 11, 2025.

Positive sentiments were reinforced by workers’ remittances rising to US$3.4 billion in June 2025, up 8%YoY, taking FY25 inflows to US$38.3 billion, up 27%YoY.

Foreign exchange reserves held by State Bank of Pakistan (SBP) were reported at US$14.5 billion as of July 04, 2025. Despite that PKR witnesses slight depreciation.

However, market participation declined, with average daily traded volumes falling by 2.0%WoW to 948 million shares, down from 967 million shares in the earlier week.

The GoP raised PKR1.4 trillion from T-Bills auction.

Auto sales for June 2025 were recorded at 25,305 units, up 43%YoY, driven by higher Passenger Cars and LCVs sales, mainly due to pre buying ahead of the proposed GST hike on vehicles up to 850cc from 12.5% to 18%.

The government utilized a total of PKR1,045 billion, out of the budgeted allocation of PKR1,100 billion, for development projects during FY25.

Other major news flow during the week included: 1) Pakistan retires PKR500 billion SBP debt early, 2) GoP raises PKR208 billion from PIBs auction, 3) Textile exports rose by 7.22%YoY in FY25, 4) Pakistan and Russia discuss steel mill revival, and 5) Nepra announced negative FCA of PKR4.03/kwh for KE consumers.

Woollen, Jute, Textile spinning, Textile composite, and Modaraba, were amongst the top performing sectors, while ETFs, Technology & Communication, Close-end Mutual Funds, Oil & Gas Exploration, and Refinery were amongst the laggards.

Major buying of US$19.2 million and US$14.1 million was recorded by Mutual Funds and Individuals, respectively. Companies and Banks were the sellers during the week, with a net sell of US$8.9 million and US$8.7 million, respectively.

Top performing scrips of the week were: 1) BNWM, MEHT, GADT, KTML, and KOHC, while laggards included: PSEL, AIRLINK, PKGP, BAHL, and EFERT.

According to AKD Securities, PSX is likely to maintain a positive trend in the coming weeks, driven by the expectations of strong corporate earnings.

The index is anticipated to remain on upward trajectory, 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, KOHC, FCCL, INDU, and SYS.

PSX benchmark index up 0.49%WoW

Pakistan Stock Exchange (PSX) remained range-bound throughout the week, weighed down by uncertainty regarding potential revenue measures in the upcoming Federal Budget FY26, trading within the thin range. Benchmark index gained 588 points or 0.49%WoW to close at 119,691 points on Friday, May 30, 2025.

Market participation improved, with average daily traded volumes rising by 34.6%WoW to 662 million shares, up from 492 million shares a week ago.

The IMF concluded its staff mission last week on the Federal Budget FY26, stating that discussions on the upcoming budget proposals were constructive, while further deliberations will continue.

GoP raised PKR720 billion from T-Bills auction, with cutoff yields for 6-month falling to 11.18%, which was at a 38-month low.

China has assured Pakistan of US$3.7 billion in refinancing in June 2025, which will facilitate Pakistan to meet IMF's foreign exchange reserves target of US$14 billion by the FY25 end.

The government is reportedly close to finalizing a financing agreement aimed at retiring circular debt in the power sector.

PKR depreciated marginally by 0.02%WoW to close at 282.02/US$.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$70 million to a 19-week high of US$11.5 billion.

Other major news flow during the week included: 1) Weekly inflation recorded a decline of 0.81%, 2) FBR to levy 18% sales tax in FATA/PATA region, 3) GoP considering exempting import of equipment and machinery for up-gradation of refineries under Brownfield Refinery Policy, 4) GoP considering reduction of GST on packaged milk, and 5) SBP raised PKR187 billion through floating rate PIBs.

Jute, Textile Weaving, and Paper & Board were amongst the top performing sectors, while Automobile Assembler, Transport, and Food & Personal Care were the laggards.

Major selling was recorded by Foreigners with a net sell of US$5.6 million. On the other hand, Brokers and individuals absorbed most of the selling with a net buy of US$6.4 million.

Top performing scrips of the week were: KTML, PKGP, KEL, PTC, and APL, while laggards included TPLRF, RMPL, GADT, SAZEW, and AGL.

According to AKD Securities, market is expected to remain positive in the coming weeks, with developments around the upcoming federal budget likely to drive short-term sentiment, along with room for rate cut in the upcoming MPC meeting as forecast for FY26 inflation at 7.0%.

The benchmark index is anticipated to sustain its upward trajectory, 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, MEBL, MCB, HBL, LUCK, FCCL, INDU, and SYS.