Pakistan Stock Exchange Surges Over 3% as Market Crosses 145,000-Point Mark

The Pakistan Stock Exchange (PSX) recorded a strong performance this week, gaining 3.08% on a week-on-week basis and breaking past the 140,000-point barrier, according to a market review released on Friday.

Data from the PSX website showed the benchmark index closing the week at 145,382.79 points in Friday’s session, marking one of the highest levels in recent months. Average daily traded volume stood at 653 million shares, while the average daily traded value reached Rs47 billion (approximately $165 million).

Analysts attribute the rally primarily to sustained buying activity by mutual funds, bolstered by fresh inflows of capital. Karachi-based Topline Securities noted in its weekly review that equities continue to outperform other asset classes, making them an attractive option for investors seeking higher returns.

“The strong inflows into mutual funds, coupled with market optimism, drove robust buying momentum across key sectors,” the report stated.

On the macroeconomic front, Pakistan’s trade deficit widened significantly in July, rising 44% year-on-year to $2.8 billion. The increase was largely due to higher import volumes, offsetting gains from export growth.

Meanwhile, the country recorded remittance inflows of $3.2 billion for the month, reflecting a 7% increase compared to July last year but a 6% decline from June 2024. Analysts say remittances remain a critical source of foreign currency for Pakistan, supporting the country’s external financing needs.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell by $72 million on a weekly basis, reaching $14.2 billion as of August 1, according to figures released by the central bank on Thursday. The drop in reserves comes amid ongoing external debt repayments and rising import costs.

Market watchers suggest that while the PSX’s upward momentum is encouraging, future performance will likely hinge on macroeconomic indicators, including foreign inflows, currency stability, and the government’s fiscal management.

If the current bullish sentiment persists, analysts believe the market could test new record highs in the coming weeks, though potential volatility cannot be ruled out amid global and domestic economic uncertainties.