Stock market surge: Pakistan's KSE-100 Index concludes above 145,000 on PSX
The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index broke new ground on Wednesday, closing above the 145,000 level for the first time. This record-setting achievement was primarily driven by strong bullish momentum, significant institutional inflows, and robust buying interest across key sectors.
The day's trading was characterised by strong institutional support, especially from local mutual funds, underpinning market optimism. Robust economic indicators also played a crucial role, with a 17% year-on-year surge in export data for July 2025 signalling improved economic performance. The stability of the Pakistani rupee and rising global crude oil prices further positively influenced investor sentiment.
The record high was also bolstered by expectations of a favorable US-Pakistan tariff deal, reinforcing confidence in future economic benefits. Investor confidence was boosted by positive corporate earnings expectations and improved macroeconomic sentiment, including a nine-year low fiscal deficit for FY25 and record remittances.
Key sectors that contributed to the rally included automobile assemblers, commercial banks, oil and gas exploration, marketing companies, and refineries. Notable trading activity was observed in heavyweight stocks like Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers Limited (EFERT), Oil & Gas Development Company (OGDC), and Systems Limited (SYS), which collectively added 738 points to the index.
On Wednesday alone, the KSE-100 surged by 2,051.33 points, marking a new record high due to these factors. Analysts attributed the ongoing rally to bullish sentiment, encouraging macroeconomic indicators, and renewed investor confidence.
Elsewhere, Asian shares slipped along with Wall Street on Wednesday, with MSCI's broadest index of Asia-Pacific shares outside Japan slipping 0.2%. Japan's Nikkei eked out a small 0.2% gain.
In international trade news, Trump threatened to further raise tariffs on goods from India over its Russian oil purchases. Trump also announced the US would initially impose a "small tariff" on pharmaceutical imports before increasing it substantially in a year or two.
Notably, HBL and NBP hit their upper circuits during intraday trade in Pakistan. S&P 500 futures eased 0.1%, while Nasdaq futures fell 0.3%. The US services sector activity unexpectedly flatlined in July, and employment further weakened.
Trump also announced tariffs on semiconductors and chips will be announced in the next week or so. Both Chinese blue chips and Hong Kong's Hang Seng index were flat. Trump said the US is close to a trade deal with China and may meet Xi Jinping before the end of the year if an agreement is struck.
In summary, the record high was a result of strong institutional buying, positive export growth, stable currency, favorable international trade expectations, and strong performance in key sectors, creating a highly optimistic trading environment on that day.
Investors' confidence was boosted by positive expectations of a favorable US-Pakistan tariff deal, which was a significant factor contributing to the strong bullish momentum observed in the trading of stocks like Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers Limited (EFERT), Oil & Gas Development Company (OGDC), and Systems Limited (SYS). The robust economic indicators, including a 17% year-on-year surge in export data for July 2025, the stability of the Pakistani rupee, and rising global crude oil prices, also played a crucial role in driving the trading activity. On the contrary, Asian shares slipped along with Wall Street, and the US services sector activity unexpectedly flatlined, signaling a weakening employment market. Notably, HBL and NBP hit their upper circuits during intraday trade in Pakistan. In the international trade news, President Trump threatened to further raise tariffs on goods from India over its Russian oil purchases, and he announced the US would impose a "small tariff" on pharmaceutical imports before increasing it substantially in a year or two.
