RECORDER REVIEW
KARACHI: Pakistan’s equity market carried its bullish momentum into another week, amid robust earnings announcements and strong investor participation.
The benchmark KSE-100 index recorded intraday high of 151,262 points before closing at 149,493 points, up 3,001 points or 2 percent week-on-week basis. BRIndex100 closed the week at 15,105.56 points which was 143.35 points higher than the previous week with an average daily turnover of 600.88 million. BRIndex30 closed 43,044.36 points which was 965.81 points lower than the previous week close. While the average daily turnover remains 333.489 million.
According to JS Global Capital, average daily trading volumes on the ready board surged 30.5 percent to 790 million shares, while value traded rose to Rs44.9 billion per day, highlighting the broad-based nature of the rally. While market capitalization expanded by 1.5 percent or Rs266 billion from Rs17.469 to Rs17.735 trillion (US$62.9 billion) in a week.
Arif Habib Limited (AHL) noted that the market rally was powered by the results season, with banks, cement, and pharmaceuticals leading sectoral gains. Banks alone contributed 1,626 index points, followed by cement with 783 points, and pharma with 214 points.
Scrip-wise, Bank AL Habib (BAHL), Lucky Cement (LUCK), and Meezan Bank (MEBL) emerged as the largest positive contributors, while Habib Bank Limited (HBL) and Fauji Fertilizer (FFC) pulled the index down.
Kohat Cement (KOHC) rose 17.7 percent, Searle Pakistan (SEARL) advanced 15.4 percent, and BAHL added 14.4 percent, reflecting optimism over earnings. On the losers’ side, Pakistan Global (PGLC) plunged 8.7 percent, PakGen Power (PKGP) fell 8.0 percent, and Nestle Pakistan slipped 4.9 percent.
Foreign investors, however, remained net sellers, offloading US$13.9 million, mainly in exploration & production and oil marketing companies, while local investors—especially mutual funds and insurance companies—absorbed the selling.
On the macro front, analysts noted a narrowing of Pakistan’s current account deficit to US$254 million in July 2025, down 37 percent from the same month last year. Foreign Direct Investment rose 7 percent YoY to US$208 million, while inflows under the Roshan Digital Account (RDA) crossed US$10.75 billion, underscoring continued diaspora support.
Liquidity conditions also remained stable. The government mobilized Rs527 billion in the latest T-Bill auction against a Rs450 billion target, while the GoP Ijarah Sukuk raised Rs229 billion amid strong demand. Yields remained broadly steady, with a slight 2bps decline in the six-month tenor, according to AHL.
Meanwhile, SBP reserves rose to US$14.3 billion, with overall foreign exchange reserves standing at US$19.6 billion, providing 2.3 months of import cover.
In the energy space, power generation fell 5 percent YoY to 14,123 GWh in July due to seasonal moderation, but generation costs dropped by 13 percent YoY to Rs7.78/kWh, easing pressure on industrial margins.
On the other side, the government is also exploring climate-related financing avenues through Sustainable and Panda Bonds over the next three years, while renegotiations of the RLNG contract with Qatar are under consideration to capitalize on surplus global supply.
With the index just shy of the 150,000 milestone, analysts believe the rally is underpinned by corporate earnings strength, stable macro indicators, and improved liquidity, though vulnerabilities remain in external financing, energy costs, and policy execution.
