PSX Hits Record 133,370 Points as Trade Optimism and Earnings Fuel Rally
KARACHI – July 2025:
The Pakistan Stock Exchange (PSX) kicked off the week on a strong bullish note, with the benchmark KSE-100 index gaining 1,421 points or 1.08%, closing at an all-time high of 133,370.15. The rally was driven by robust bank earnings expectations, positive developments in US-Pakistan trade talks, and continued macroeconomic stability.
🔼 Key Highlights of the Day’s Rally
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Intra-day High: 133,862
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Trading Volume: 919.9 million shares
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Value Traded: Rs45.3 billion
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Companies Traded: 479 (299 advanced, 155 declined, 25 remained unchanged)
💼 Market Drivers
📊 Bank Stocks Lead the Charge
The day-long rally was largely powered by banking stocks, anticipating strong earnings and dividend payouts for the June quarter. Major contributors included:
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HBL (+3.67%)
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Bank Alfalah (+4.25%)
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MCB Bank
These alone contributed significantly to the index’s upward momentum.
👕 Textiles Get a Boost from US Trade Agreement
Investor sentiment was further buoyed by news that Pakistan and the US have reached a trade and tariffs agreement, averting the imposition of a feared 29% duty on exports. This spurred optimism in textile stocks, with analysts expecting enhanced export potential.
“Stocks closed at a new all-time high on receding fears of US tariffs and optimism over earnings season,” said Ahsan Mehanti, Arif Habib Corp.
📈 Major Contributors to Index Gains
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HBL, Fauji Fertiliser Company, Bank Alfalah, MCB Bank, Lucky Core Industries
➤ Combined Contribution: +476 points
🟥 Negative Contributors
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Adamjee Insurance (-3.82%)
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Engro Fertilisers (-0.48%)
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Mari Petroleum (-0.36%)
🗣️ Analysts’ Commentary
“The 130,000 level now acts as a key support. With strong corporate earnings ahead and macro indicators improving, bullish momentum is likely to continue,”
— Arif Habib Limited (AHL)
“Investor confidence is rising due to falling inflation, strengthening forex reserves, and capital inflows. With higher taxes on alternative assets, capital is shifting toward equities,”
— Muhammad Hasan Ather, JS Global
🌍 Foreign Investors & Volume Leaders
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Foreign Net Selling: Rs708.4 million
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Top Volume Leaders:
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Image Pakistan: 48.1M shares (+Rs3.08 to Rs36.32)
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Bank of Punjab: 42.5M shares (+Rs0.21 to Rs11.87)
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WorldCall Telecom: 36.9M shares (unchanged at Rs1.55)
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📉 Macroeconomic Context
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Inflation: On a downtrend
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Forex Reserves: Rising
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Rupee: Stable
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US Trade Talks: Positive resolution expected
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Corporate Earnings: Upbeat outlook for Q2
📊 What’s Next?
With the earnings season heating up, ongoing privatisation plans, and stable macro indicators, investors are optimistic that the KSE-100 index could push further beyond the 133,000 mark, solidifying it as a new base.
However, foreign selling pressure, global market volatility, and clarity on the formal US trade deal announcement remain key watchpoints.
