Moaaz Manzoor

The Pakistan Stock Exchange’s (PSX) bullish streak continued last Friday, with the KSE-100 Index surging 4,348 points to close at 145,383, up 3.1% week-on-week, the strongest performance in months, WealthPK reports.

The trading volumes rose 16.3% to 653 million shares, while traded value jumped 30.7% to $165.5 million, reflecting strong investor participation. Sector-wise, the banking sector contributed 1,782 points, cement 501 points, and fertilizers 488 points. Major movers included HBL (+676 points), UBL (+369 points), and OGDC (+320 points). In July 2025, cement dispatches climbed 30.1% year-on-year due to strong exports and post-Eid demand. Meanwhile, petroleum sales rose by 2% to 1.22 million tons, benefiting from the lower prices.

Macro indicators added to the momentum: July remittances hit a record $3.2 billion, up 7% year-on-year, while the fiscal deficit narrowed to PKR 6.2 trillion (5.4% of GDP) from 6.8% in FY24, driven by improved tax and non-tax revenues. The State Bank’s foreign reserves eased by $72 million to $14.23 billion. The rally carried into Monday, with the index gaining 1,547 points to close at 146,930, up 1.06% on the day.

“The bulls are marching toward 150,000 with full excitement, as the KSE100 index breached 146,000 and called the day just below 147,000,” Ali Najib, Deputy Head of Trading at Arif Habib Limited, told WealthPK. He added that the sentiment remained positive amid hopes of a US-Pakistan trade deal, with investors anticipating favourable terms for Pakistani exports from the ongoing visit of the army chief to Washington.

The E&P sector led the day on news that circular debt resolution might be announced soon, with MARI and OGDC jointly adding 526 points. Banking stocks BAHL, MEBL, MCB, HMB, and FABL drew consistent buying interest, contributing 679 points. Investor activity was slightly higher, with 607 million shares traded and a total turnover of Rs43.9 billion; LOTCHEM led volumes with 73.2 million shares.

Najib noted that progress on circular debt resolution could further fuel the bulls’ upward momentum. However, he also cautioned that some consolidation or a mild correction remains possible, with 145,000 as the first support, followed by 143,000, and 150,000 as the next resistance. Meanwhile, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, attributed the broader rally to political and economic stability, cement’s export momentum, and fertilizer sector’s growth. He also pointed to the KSE-100’s large-cap composition, saying its performance “reflects the broader economic health of the country.”

Credit: INP-WealthPk