Islamabad 7 August: The Pakistan Stock Exchange (PSX) maintained its upward trajectory on Thursday, driven by strong corporate earnings and growing investor confidence in improving macroeconomic conditions.
The benchmark KSE-100 Index reached an intraday high of 146,081.02 points, rising 992.53 points or 0.68%, before settling slightly above its previous close of 145,088.49. The index recorded a session low of 145,250.17 points, up 161.68 points or 0.11%.
“Optimism surrounding improving economic fundamentals and solid corporate results continues to fuel market sentiment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
In the fixed income market, the government secured Rs370 billion through Wednesday’s Treasury bill (T-bill) auction, falling short of its Rs400 billion target and against maturities worth Rs544 billion. Yields increased across all tenors, reflecting investor caution following the State Bank of Pakistan’s (SBP) decision to keep the policy rate steady at 11%. The one-month T-bill yield rose 5 basis points to 10.8996%, the three-month paper increased 15 basis points to 10.8502%, the six-month T-bill climbed 17 basis points to 10.8739%, and the 12-month paper saw the steepest rise, up 30 basis points to 10.9999%.
The SBP’s unchanged 11% policy rate follows a cumulative 1,100-basis-point reduction from a peak of 22% in June 2024, as inflation pressures eased. However, renewed inflationary concerns have reduced expectations for near-term rate cuts.
The government plans to borrow Rs6.175 trillion domestically between August and October, including Rs3.675 trillion through T-bills and Rs2.5 trillion via Pakistan Investment Bonds (PIBs), underscoring its reliance on local financing amid constrained external options.
On the corporate front, MCB Bank Limited declared a second interim cash dividend of Rs9 per share (90%), bringing its total payout for the first half of 2025 to 180%. The bank reported a profit before tax of Rs58.06 billion for the six months ending June 30, with a profit after tax of Rs27.31 billion. Earnings per share stood at Rs23.04, compared to Rs26.95 in the same period last year.
The KSE-100’s rally builds on Wednesday’s strong performance, when the index jumped 2,051.33 points or 1.43% to close at a record high of 145,088.49, up from 143,037.16, with an intraday high of 145,187.17 and a low of 143,409.59.
