The Pakistan Stock Exchange (PSX) experienced a robust surge, with the benchmark KSE-100 Index approaching the historic 140,000-point level during early trading on Monday. By 9:35 AM, the index climbed to 139,988.07, reflecting a gain of 780.79 points or 0.56%. This upward movement was driven by widespread buying in key sectors such as automobile assemblers, commercial banks, oil and gas exploration, and refineries.
Reasons to Soar for Benchmark KSE-100 Index
Stocks like Pakistan Refinery Limited (PRL), Attock Refinery Limited (ARL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), and Pakistan Petroleum Limited (PPL) traded positively, contributing to the bullish sentiment. The market’s optimism was fueled by expectations of a potential policy rate cut at the upcoming Monetary Policy Committee meeting, alongside positive macroeconomic signals such as easing inflation and a recent sovereign credit rating upgrade to ‘B-’ with a stable outlook by Standard & Poor’s. This upgrade has bolstered investor confidence, further supported by Pakistan’s ongoing engagement with the International Monetary Fund (IMF) and improving fiscal metrics.
Last week, the KSE-100 Index rose by 610 points, or 0.44%, closing at 139,207 points. Despite a range-bound performance due to the earnings season and futures rollover, the market maintained its positive trajectory. Social media posts on X highlighted strong local investor interest, with sectors like fertilizers and exploration and production leading the gains. Analysts noted that stocks such as Engro Fertilizers (EFERT) and Hub Power Company (HUBCO) were among the top performers, reflecting confidence in Pakistan’s economic reforms.
The index’s recent performance underscores a broader trend of resilience, with the KSE-100 gaining 14.25% over the past month and an impressive 78.70% compared to the previous year. Market analysts project continued bullish momentum, with 137,000 points serving as a critical support level. However, they caution that a dip below this could see the index test 135,000, where attractive valuations may spur renewed buying interest.
This sustained rally highlights Pakistan’s improving economic landscape, driven by anticipated monetary easing and global recognition of its fiscal progress. Investors remain optimistic, but careful monitoring of macroeconomic developments will be key to sustaining this growth.
Published in SouthAsianDesk, July 28th, 2025
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