Islamabad, July 11, 2025: The Pakistan Stock Exchange (PSX) saw a strong upward move as the benchmark KSE-100 Index shot by 1,047 points; closing at 134,830 points, just shy of its all-time high of 134,863 points reached earlier this month.
This shows the sustained bullish sentiment in Pakistan’s equity market amid improving economic fundamentals.
The index’s gain of around 0.78% on the day contributed to a monthly increase of over 8 per cent; while year-to-date returns have exceeded 67 per cent, making the PSX one of the best-performing emerging markets globally this year.
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The market’s momentum is supported by easing inflation, stabilizing exchange rates, and expectations of a new IMF Extended Fund Facility programme, which could inject $6-$8 billion into the economy.
Key sectors driving the surge included banking, oil and gas exploration, and fertiliser companies. Commercial banks and oil marketing companies, in particular, have reported improve profitability and cash flows, benefitting from declining interest rates that have reached single digits, improving their return on equity.
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Heavyweights such as Pakistan Petroleum Limited, Oil & Gas Development Company, and Mari Petroleum led the volume and value traded, reflecting strong institutional and retail participation.
Trading volumes remained robust, with over 600 million shares changing hands, indicating active market engagement. Despite the bullish momentum, analysts advice cautious optimism given the elevated valuations; though the market still trades at a relatively attractive price-to-earnings ratio of around 7.3, below its 10-year average, suggesting room for re-rating.
