KARACHI: The Pakistan Stock Exchange (PSX) surged to new heights on Monday, with the benchmark KSE-100 Index closing at a record 136,502.53 points — a gain of 2,202.77 points or 1.64% from the previous session. The rally was driven by strong macroeconomic indicators, investor optimism ahead of earnings season, and increasing foreign inflows.
The index soared to an intraday high of 136,841.49, marking a jump of 2,611.73 points (1.94%), while the day’s low was recorded at 134,937.43, still up by 637.67 points (0.47%).
“Stocks are trading at all-time highs amid anticipation of robust corporate earnings. Low inflation, growing exports, progress on state-owned enterprise (SOE) privatisation, and rising global crude prices are fuelling the bullish momentum,” said Ahsan Mehanti, CEO of Arif Habib Commodities.
Economic analyst AAH Soomro added that improved foreign exchange reserves and strong backing from the International Monetary Fund (IMF) continue to attract fresh investment. “The hike in taxes on fixed income returns in the latest budget is also pushing more investors toward equities,” he noted.
PM Welcomes Market Confidence
Prime Minister Shehbaz Sharif welcomed the market milestone, calling it a sign of rising investor and business community confidence in the government’s economic direction. He reiterated the government’s commitment to a pro-business environment and said the country had moved from a phase of stabilisation to one of sustainable growth.
Positive Indicators Fuel Investor Optimism
Market sentiment remains upbeat amid a series of encouraging economic developments:
- Record remittances: Pakistan received $38.3 billion in workers’ remittances for FY25 — the highest ever, representing a 27% year-on-year increase. In June alone, inflows reached $3.4 billion, up 8% from last year.
- Rising foreign reserves: The State Bank of Pakistan (SBP) reported a $1.8 billion week-on-week increase in forex reserves, bringing the total to $14.5 billion — the highest in 39 months. Including commercial bank reserves, total reserves have now exceeded $20 billion for the first time in three years.
- IMF endorsement: IMF Resident Representative Mahir Binici praised Pakistan’s performance under the Extended Fund Facility (EFF), noting that early policy reforms have helped restore macroeconomic stability and rebuild market confidence.
Looking Ahead
Analysts expect the rally to continue this week as the earnings season kicks off and key financial data is released. Investors are also keeping a close eye on the upcoming Panda bond issuance, with recent high-level meetings in China aimed at finalising plans. The bond, scheduled for later this year, is expected to help diversify Pakistan’s external financing sources and further stabilise the country’s balance of payments.
Market Recap
The KSE-100 had already shown strong momentum on Friday, gaining 517.42 points (0.39%) to close at 134,299.77. The session saw a high of 134,931.96 and a low of 134,130.41.
With investor sentiment riding high and economic fundamentals showing signs of improvement, Pakistan’s equity market appears poised for continued growth in the near term.
