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The Pakistan Stock Exchange (PSX) began the new trading week with a historic surge as the benchmark KSE-100 index crossed the 133,000-point mark for the first time in its history. This milestone, achieved on Monday, July 7, 2025, reflects growing investor confidence, improving economic indicators, and strong performances in key sectors such as banking, oil & gas, and automotive industries.
The KSE-100 index rose sharply during the morning session, reaching 133,083.47 points at approximately 9:55 AM, up by over 1,100 points. The momentum continued, and by 10:15 AM, the index climbed to 133,257.44, reflecting a daily gain of nearly 1% in just the early hours of trading.
This remarkable growth follows last week’s strong performance when the index closed at 131,949 points—registering a weekly gain of 6.1%. The upward trajectory of the market is being hailed as a signal of economic stabilisation and investor optimism.
Several factors have contributed to this extraordinary performance by the Pakistan Stock Exchange:
Economic Reforms and Fiscal Discipline
The government has recently implemented a series of fiscal reforms aimed at stabilising the economy, enhancing tax revenue, and reducing the fiscal deficit. These efforts have been well-received by investors and international financial institutions alike.
IMF Support and External Financing
Ongoing cooperation with the International Monetary Fund (IMF) has bolstered confidence in Pakistan’s macroeconomic direction. The approval of subsequent tranches and negotiations for future support programs have provided reassurance to both domestic and foreign investors.
Appreciation of the Pakistani Rupee
The rupee has shown relative stability against the US dollar in recent weeks, adding another layer of confidence for investors who had previously been wary of currency volatility.
Corporate Earnings and Sectoral Strength
Companies across key sectors have reported strong quarterly earnings. Investors are particularly bullish on banks, oil marketing companies (OMCs), exploration & production firms, and refineries. Stocks such as PSO, ARL, HUBCO, SSGC, EFERT, MCB, Meezan Bank, and UBL were among those showing strong upward movement.
Foreign Portfolio Inflows
With global investors seeking higher returns amid sluggish markets elsewhere, Pakistan’s undervalued equities have begun to attract foreign inflows. This trend has further fuelled buying momentum on the PSX.
The KSE-100 index has had an exceptional fiscal year. It recorded a 60.15% gain during FY2025, making it one of the best-performing stock indices globally and the top-performing asset class in Pakistan for the year. This level of performance has not only drawn the attention of individual investors but also prompted institutional funds to increase their exposure to Pakistani equities.
The recent rally has been described by analysts as more than just a technical or speculative spike. Rather, it is indicative of genuine investor optimism backed by fundamentals. Improved inflation control, interest rate management, and a narrowing current account deficit have collectively created a more stable investment environment.
Market participants are also encouraged by the government’s commitment to privatisation, energy sector reforms, and expanding tax net coverage. These structural improvements are seen as essential for sustaining long-term economic growth.
Still, some analysts urge caution, pointing out that sustainability depends on continued political stability, responsible fiscal management, and global economic conditions.
Despite the strong performance, certain risks persist:
Geopolitical tensions in the region could affect foreign investor sentiment.
Inflation pressures, though currently under control, could rise again if energy prices increase.
External debt obligations need to be carefully managed to avoid putting pressure on foreign exchange reserves.
However, for now, market sentiment remains strongly positive, and the PSX appears well-positioned to continue attracting capital in the near term.
The Pakistan Stock Exchange’s breach of the 133,000-point mark is not merely a psychological milestone—it’s a reflection of the resilience and potential of Pakistan’s economy. While challenges remain, the market’s performance offers a hopeful sign of recovery and growth in a post-pandemic and politically evolving economic landscape.
If current trends continue and structural reforms deepen, the PSX may yet reach new heights in the months to come, reinforcing its status as one of the most dynamic emerging markets in the region.
Reference: پاکستان اسٹاک مارکیٹ میں کاروباری ہفتے کا شاندار آغاز،ایک لاکھ 33 ہزار پوائنٹس کی حد عبور کر لی
