KSE-100 crosses 136,000 mark in record-breaking rally

• KSE-100 Index closed at 136,502.53, gaining 2,202.77 points, or 1.64%.
• Index touched intraday high of 136,841.49, up 2,611.73 points, or 1.94%.
• It dipped to a session low of 134,937.43, rising 637.67 points or 0.47%.

The equity market rallied on Monday as investors responded to bullish macro signals, record inflows, and the onset of earnings season.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 136,502.53 points, up 2,202.77 points, or 1.64%, from the previous close of 134,299.76.

The index climbed to an intraday high of 136,841.49, gaining 2,611.73 points, or 1.94%, while touching a low of 134,937.43, reflecting an increase of 637.67 points, or 0.47%.

“Stocks trading at new all-time high amid speculations in the earnings season ahead of major earnings announcement this week. Thin inflation, surging exports, SOEs privatisation and surging global crude oil prices played catalyst role in bullish activity at PSX,” said Arif Habib Commodities Managing Director and CEO Ahsan Mehanti.

Independent investment and economic analyst AAH Soomro added: “The rally continues on strong IMF endorsement and improvements in FX reserves. New investors pouring in after increased tax on fixed income returns in the budget.”

Prime Minister Shehbaz Sharif expressed satisfaction over the KSE-100 Index crossing the 135,000-point milestone, terming it a reflection of growing confidence among investors and the business community. He said the recent rally and improving economic indicators demonstrate that the government’s policies are moving in the right direction.

The premier reiterated that ensuring a business-friendly environment remains a top priority, adding that the country has entered a phase of economic growth after stabilisation and the government is committed to national development and public welfare.

Analysts anticipate continued positive sentiment this week, backed by record-breaking remittances, elevated foreign exchange reserves, and improved macroeconomic indicators. 

Investor focus will likely remain on corporate earnings, the planned Panda bond issuance, and further developments on foreign funding and debt management.

Reinforcing investor confidence, International Monetary Fund (IMF) Resident Representative for Pakistan Mahir Binici said a day earlier that the country’s performance under the Extended Fund Facility (EFF) has been “strong so far”.

She added that early policy measures had helped restore macroeconomic stability and rebuild investor trust despite persistent external challenges.

Pakistan received its highest-ever annual workers’ remittances, totalling $38.3 billion for FY25, up 27% year-on-year (YoY). June alone saw inflows of $3.4 billion, an 8.0% increase compared to the same month last year. This inflow significantly strengthened the country’s external position, lifting investor confidence.

Additionally, the State Bank of Pakistan (SBP) reported that its foreign exchange reserves jumped by $1.8 billion week-on-week to reach $14.5 billion for the week ended July 4, marking a 39-month high. With commercial bank reserves included, the country’s total foreign reserves have now crossed the $20 billion mark for the first time in three years.

Meanwhile, preparations for Pakistan’s debut Panda bond issuance are progressing, with high-level meetings held in China this week to finalise arrangements. 

The bond, expected to be launched later this year, will help diversify Pakistan’s funding sources and bolster its external account stability.

On Friday, the KSE-100 increased by 517.42 points, or 0.39%, to 134,299.77 points from 133,782.35 points recorded in the last session. The highest index of the day remained at 134,931.96 points, while the lowest level was recorded at 134,130.41 points.