Moaaz Manzoor

The KSE-100 index notched its eighth consecutive weekly gain in the shortened four-day trading week, rising by 1,109 points, or 0.8% WoW, to close at 146,492.

The benchmark briefly touched an all-time high of 147,005 on Tuesday in the last week, underscoring a bullish streak that has lifted the market steadily since June. With momentum building and the psychological 150,000 milestone now in sight, investor optimism appears firmly anchored.

Sectoral performance reflected mixed trends. Banks contributed the most, adding 1,062 points, followed by cement (531 points), auto parts (104 points), auto assemblers (67 points), and investment banks (62 points). On the contrary, fertilisers dragged the index down by 318 points, while exploration and production (-214 points), oil marketing companies (-159 points), power (-102 points), and refinery (-43 points) also posted negative contributions.

On a scrip-wise basis, MEBL provided the highest support with 354 points, followed by LUCK (289 points), HBL (253 points), BAFL (158 points), and MARI (136 points). However, the index was weighed down by FFC (-313 points), PPL (-198 points), UBL (-195 points), OGDC (-171 points), and HUBC (-125 points). Average weekly trading volumes stood at 606 million shares, down 7.2% WoW, while the average traded value declined by 13.1% WoW to USD 143.8 million.

From an economic perspective, several key developments shaped investor sentiment. Moody’s upgraded Pakistan’s sovereign rating to Caa1 from Caa2 with a stable outlook, citing improved external buffers, fiscal consolidation, and reforms under the IMF programme. Meanwhile, circular debt in the power sector fell to Rs1.6 trillion by June 2025 from Rs2.4 trillion a year earlier, mainly due to Rs801 billion cleared under the government’s settlement initiative.

The automotive industry reported sales of 11,034 units in July 2025, down 49% MoM but up 28% YoY, while oil production rose 0.8% WoW to 59,604 barrels per day, supported by increased output from Makori East and Nashpa fields. The Pakistani rupee also gained 0.14% WoW, closing at 282.06 against the US dollar.

Commenting on the week’s performance, Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said: “Consolidation continues! PSX ended the last session of the week on a flat note, settling at 146,491 points, down 38 points or 0.03%. Investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark.

The session’s tone reflected a cautious approach ahead of the weekend, with traders balancing positions in anticipation of fresh cues for the market’s next directional move.” He noted that EFERT, LUCK, ENGROH, MEBL, and AIRLINK collectively added 512 points, while OGDC, UBL, PPL, HUBC, and MARI erased 499 points. Market participation also slowed on Friday, with volumes at 472 million shares and turnover at Rs32.8 billion.

Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, added: “The KSE-100 index managed to extend its bullish run this week, briefly touching 147,534 points before easing on Friday to close at 146,492, still posting a weekly gain of 0.8%. Market optimism was largely underpinned by Moody’s decision to upgrade Pakistan’s rating, a move that reflects confidence in the country’s improving external accounts.”

Credit: INP-WealthPk