The Pakistan Stock Exchange (PSX) opened the week with strong momentum, building on last week’s record gains. The KSE-100 Index surged to an intraday high of 142,174.23, rising 1,139.25 points or 0.81%. This reflects growing investor confidence ahead of upcoming corporate earnings and fiscal updates.
Experts say the bullish trend is fueled by expectations of strong financial results, a stable rupee, and easing inflation data. Ahsan Mehanti, CEO of Arif Habib Commodities, said stocks are hitting new highs as investors anticipate positive earnings announcements this week. These factors have collectively boosted market activity.
On the previous Friday, the KSE-100 Index closed at an all-time high of 141,034.98 points, up 1,644.56 points or 1.18% from the day before. The market showed resilience with a cumulative weekly gain of 1,828 points, or 1.31%. Analysts predict this upward trend will continue as companies release their earnings reports.
The Monetary Policy Committee kept the key interest rate steady at 11%, despite market expectations for a cut. This decision was made due to inflation concerns, with headline inflation rising to 4.1% year-on-year in July from 3.2% in June. The inflation rise was caused by higher costs and a fading base effect.
Meanwhile, the Pakistani rupee strengthened for the second straight week, closing at Rs282.72 per US dollar. This appreciation was supported by government actions against the black market and better enforcement. The Federal Board of Revenue also exceeded its July target, collecting Rs755 billion and adding to positive economic sentiment.
However, the State Bank of Pakistan reported a $153 million drop in foreign exchange reserves, now standing at $14.3 billion as of July 25. Additionally, the reversal of an earlier electricity tariff relief has increased inflation pressures, posing challenges for economic stability moving forward.