KARACHI; The Pakistan Stock Exchange (PSX) surged to new record highs on Monday, buoyed by strong corporate earnings, improving macroeconomic indicators, and expectations of lower inflation.
“Stability, liquidity, solid corporate results, Pakistan’s ratings upgrade, and forecasts of manageable inflation are all driving the market to fresh highs,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
The benchmark KSE-100 Index closed at 148,196.42 points, rising 1,704.79 points, or 1.16%, from Friday’s close of 146,491.63. During the session, the index touched an intraday peak of 148,395.71, up 1,904.08 points, or 1.3%, while the lowest level was recorded at 146,403.64, down 87.99 points, or 0.06%.
Market sentiment is expected to stay positive in the coming week, supported by upbeat earnings announcements, anticipated progress on circular debt reforms, and potential clarity on government’s industrial policy, including the phased removal of the super tax.
In the energy sector, the power division is preparing to present its final proposal on debt reprofiling with Chinese independent power producers (IPPs), who are owed Rs475 billion.
Liquidity in the financial system remains strong, with commercial bank deposits reaching Rs33.756 trillion as of August 1, up 12.51% year-on-year, driven by robust remittance inflows and a shift toward formal savings amid easing inflation. Overseas remittances rose 7.4% year-on-year in July to $3.2 billion, the highest ever for the month, though down 6% from June.
Meanwhile, Pakistan’s foreign exchange reserves with the State Bank edged up by $11 million to $14.243 billion as of August 8. Total reserves stood at $19.497 billion. The marginal increase followed Moody’s upgrade of Pakistan’s credit rating from ‘Caa2’ to ‘Caa1’ with a stable outlook.
Alongside earlier upgrades by Fitch and S&P, the improved ratings are expected to bolster Pakistan’s external financing prospects. The government says the economy is stabilizing under the $7 billion IMF programme.
Last week, the KSE-100 Index gained 1,109 points, or 0.76%, despite ending Friday with a slight decline of 37.67 points.
