The Pakistan Stock Exchange (PSX) started the week on a strong note, with the KSE-100 Index climbing to a historic intraday high of 142,174.23 points, gaining 1,139.25 points (0.81%). Investors remained bullish ahead of major corporate earnings announcements, while stable inflation data and rupee appreciation further fueled the rally. Analysts attributed the surge to strong financial results and positive fiscal developments, including progress on resolving circular debt.
Ahsan Mehanti, CEO of Arif Habib Commodities, noted that speculation around earnings, rupee stability, and controlled inflation played a key role in the market’s upward trajectory. The KSE-100 had closed at a record high of 141,034.98 points on Friday, marking a weekly gain of 1,828 points (1.31%). With corporate results expected to remain strong, analysts predict the bullish trend will continue in the near term.
Despite market optimism, the State Bank of Pakistan (SBP) kept the key interest rate steady at 11%, contrary to expectations of a cut. Inflation rose to 4.1% year-on-year in July, up from 3.2% in June, due to fading base effects and rising costs. Meanwhile, the Sensitive Price Index (SPI) showed a 0.9% annual decline but a 3.1% monthly increase, reflecting lingering price pressures.
The Pakistani rupee appreciated for the second consecutive week, closing at Rs282.72 per dollar, supported by crackdowns on illegal currency trading. Additionally, the FBR surpassed its July revenue target by Rs7 billion, collecting Rs755 billion. However, SBP reserves fell by $153 million to $14.3 billion, and the reversal of electricity tariff relief added to inflationary concerns, posing challenges for future economic stability.
