The Pakistan Stock Exchange (PSX) showed strong momentum this week, gaining 3.08% to close at 145,383 points. The market hit an all-time high of 145,647 points on Thursday, fueled by positive corporate earnings and hopes for progress on circular debt resolution. Market activity rose with daily traded volumes up 16.3% from the previous week.
Expectations for upcoming corporate results kept investors optimistic. AKD Securities reported that further developments in circular debt and strong earnings announcements would continue to support the market’s positive trend in the coming weeks. Despite a slight dip on Friday, overall sentiment remains upbeat.
On the macro front, Pakistan’s trade deficit widened 44% year-on-year to $2.8 billion in July 2025. Workers’ remittances rose 7% to $3.2 billion, while the State Bank’s foreign exchange reserves fell by $72 million to $14.2 billion. The Pakistani rupee appreciated slightly, closing at 282.47 against the US dollar.
Key sector highlights included a robust 30% growth in cement dispatches and a 2% increase in oil marketing companies’ sales. Internationally, the US imposed a 25% tariff hike on India, raising reciprocal tariffs to 50%. Pakistan also saw important developments like a tariff settlement with the US and talks with Qatar on LNG supply.
Sector-wise, Woollen, Jute, Insurance, Tobacco, and Food & Personal Care stocks outperformed, while Synthetic & Rayon, Mutual Funds, Chemicals, Sugar, and Textile Weaving lagged. Banks/DFIs were net sellers with $18.8 million offloaded, while Mutual Funds bought $22.9 million, helping balance the market flows.