The Pakistan Stock Exchange (PSX) extended its upward trajectory on Friday, with the benchmark KSE-100 Index surging to an unprecedented intraday high of 134,711.74 points. The index closed with a gain of 929.4 points (0.69%), reflecting strong investor sentiment ahead of the corporate earnings season. Analysts credited the rally to improving macroeconomic conditions and expectations of robust financial results from key sectors.
A major factor behind the market’s optimism was the latest data from the State Bank of Pakistan (SBP), which revealed a $1.938 billion increase in foreign exchange reserves, bringing the total to $20.029 billion. The central bank’s reserves alone rose by $1.774 billion to $14.502 billion, while commercial banks saw a $163 million uptick. The SBP attributed this growth to official inflows, including multilateral funding and strategic dollar purchases in the interbank market.
The reserves were further bolstered by China’s rollover of $3.4 billion in loans, along with $1 billion in commercial financing from Middle Eastern banks. Additionally, remittances reached a historic $38.3 billion in FY2025, marking a 27% year-on-year increase. June 2025 alone saw $3.4 billion in remittances, up 7.9% compared to the same month last year.
Thursday’s trading session had already set a positive tone, with the KSE-100 gaining 1,205 points (0.91%) to close at 132,782.35. The index fluctuated between 133,902.34 and 132,706.03 points during the day, showcasing sustained bullish momentum. With strong economic indicators and continued foreign inflows, market experts remain optimistic about further growth in the coming weeks.