The Pakistan Stock Exchange (PSX) staged a robust recovery on Thursday, with the KSE-100 Index jumping 1,155.66 points (0.87%) to an intraday high of 133,774.88, reversing Wednesday’s losses. The rally was fueled by banking sector gains and optimism over improving macroeconomic indicators, including record remittances and successful government debt auctions.
Remittances & Forex Reserves Boost Confidence
Investor sentiment strengthened after the State Bank of Pakistan (SBP) reported remittances hit an all-time high of $38.3 billion in FY25, up 26.6% YoY. June inflows alone reached $3.4 billion, though slightly lower than May. Meanwhile, SBP reserves surged to $14.51 billion, nearly five times their early-2023 levels. These figures overshadowed FY25’s $32.1 billion export earnings, highlighting remittances’ critical role in economic stability.
Debt Auctions Exceed Targets
The government’s T-bill auction raised Rs1.41 trillion, surpassing its Rs1.35 trillion target. Yields on one-month papers rose 24 bps to 11.24%, while other tenures held steady. Separately, Rs208 billion was raised via Pakistan Investment Bonds against a Rs300 billion goal, reflecting strong investor appetite. Analysts like AAH Soomro noted the market is “rerating” with banks leading the charge, potentially establishing a new base above 130,000 points.
Outlook & Market Dynamics
After Wednesday’s 0.62% decline, Thursday’s rebound signals renewed confidence. With remittance inflows robust and debt markets performing well, the PSX rally may sustain if macroeconomic stability continues. Eyes are now on whether the KSE-100 can consolidate gains and push toward new highs in the coming sessions.