By Zaryoon Saboor Khan
The Pakistan Stock Exchange (PSX) closed the week soaring to unprecedented highs, with the KSE-100 index surging past the 146,000 mark for the first time in its history.
The index settled at 145,382 points on Friady, marking a gain of over 2,500 points for the week, driven by renewed investor confidence, improving macroeconomic indicators, and easing inflationary pressures.
The bullish momentum throughout the week was underpinned by positive developments on the economic front, including a rise in export figures, strengthening of the rupee, and continued commitment from the government to pro-business reforms. Investor sentiment was further lifted by expectations of additional rate cuts by the State Bank in the coming months.
Field Marshal Asim Munir being invited to the United States the second time in just under a month also contributed positively in boosting the market confidence.
Market activity remained strong with average daily volumes crossing 300 million shares, led by aggressive institutional buying in key sectors. Major gains were seen in cement, banking, energy, and technology stocks, with several blue-chip companies reaching their 52-week or all-time highs.
Among the most actively traded stocks during the week were World Call Telecom, Bank of Punjab, Pak Elektron, Oil and Gas Development Company, and Unity Foods. Tech sector darling Systems Limited posted impressive gains, while energy giants such as OGDC and Pakistan Petroleum Ltd. surged in response to rising global oil prices.
On the financial side, Meezan Bank and UBL performed strongly, supported by healthy quarterly earnings and growing investor interest in Shariah-compliant instruments.
The PSX rally coincided with a growing sense of economic stability. Inflation continued its downward trend, clocking in below 10 percent in July, while the current account deficit showed signs of narrowing due to rising remittances and stronger exports. The rupee remained largely stable throughout the week, trading in the range of 277 to 279 against the US dollar.
Traders responded positively to reports that the government was preparing for a smooth continuation of its IMF-backed reform program. Fiscal discipline, tax reforms, and improved energy sector management remain central themes of the ongoing economic strategy, which investors hope will unlock further foreign direct investment and multilateral support.
The broader regional environment also remained relatively calm, with diplomatic engagements signaling a period of reduced tension. Talks with key allies in the Gulf and East Asia focused on trade, energy, and infrastructure cooperation, offering a potential boost to investor inflows and long-term project financing under initiatives like CPEC.
Market analysts believe that political stability and improved international relations have contributed to the current investor enthusiasm, particularly among foreign institutions returning to the PSX after months of subdued activity.
With the KSE-100 index crossing 146,000 points for the first time, the market has now gained over 18 percent since the start of the new fiscal year in July. The rally reflects r
enewed optimism in Pakistan’s recovery narrative, underpinned by coordinated fiscal and monetary policies.
Looking ahead, analysts remain bullish on several sectors including Technology and IT, Textiles, Pharmaceuticals, and Agro-based industries mainly due to the ongoing “tariff war” between the United States and India.
It is seen as an opportunity to pounce on the void created by the 50% tariff along with the additional penalties which were announced by President Trump last week. Renewable energy and Banking sectors are also viewed as the potential destiny for long term investors due to the government’s focus on clean energy transition and digital innovation attracting capital into the commercial and banking sectors respectively.
As the PSX heads into the second half of the third quarter, momentum remains firmly in the bulls’ court. While external risks such as oil price volatility and global market movements remain, local investors are encouraged by the improving fundamentals and policy continuity.
With the index at record highs and sentiment riding high, market participants will now look toward upcoming monetary policy announcements and corporate earnings to
