KARACHI: The Pakistan Stock Exchange (PSX) scaled new heights on Monday, with the benchmark KSE-100 Index surging 1,234.69 points (0.85%) to close at a record 146,617.48 points, fueled by strong corporate results and progress on circular debt resolution.
Market Momentum Builds
After a brief pause on Friday, buying activity resumed as investors cheered robust earnings reports and the government’s Rs780 billion reduction in circular debt—now down to Rs1.6 trillion.
“Stellar corporate results, improving sentiment, and liquidity are driving this rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities, adding that market movement would hinge on further earnings announcements and circular debt updates.
Macroeconomic Mixed Bag
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Trade Deficit: Jumped 44% YoY to $2.8 billion (July 2025) due to rising imports.
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Remittances: Rose 7% YoY to $3.2 billion but dipped 6% month-on-month.
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Forex Reserves: SBP holdings fell $72 million to $14.2 billion on debt repayments.
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Rupee Stability: Gained 0.1% WoW, settling at Rs282.47/USD.
Sectoral Highlights
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Textile Exports: Surged 33.7% YoY to $1.69 billion (July 2025).
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Privatisation Push: Govt unveiled a 5-year plan to sell 24 state-owned firms, starting with 10—including PIA.
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T-Bill Auction: SBP raised Rs386 billion, with yields up 5-30 bps.
Record-Breaking Rally
Last week, the KSE-100 gained 4,348 points (3.08%), peaking at 145,647 points before a slight correction. Monday’s rebound signals sustained bullish momentum, though analysts caution that profit-taking could emerge near resistance levels.
Investor Takeaway: With reforms advancing and earnings impressing, PSX remains on a record-setting trajectory—but macro risks (trade gap, reserves) warrant vigilance
