Stocks likely to continue bullish momentum amid positive economic indicators
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Pakistani stockbroker monitors the share prices during a trading session at the Pakistan Stock Exchange (PSX) on November 7, 2023. — Online
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KARACHI: The Pakistan Stock Exchange (PSX) observed a powerful rally during the outgoing week, which closed the Benchmark’s SE -100 index from 4,297 points to 138,597, which benefited 3.2 percent on Saturday (Wah).
Despite the decline in trade activity, strong economic indicators of the market, feelings of investors improvement, and the International Monetary Fund (IMF) approved Pakistan’s ongoing structural reforms.
Going next week, analysts expect the growing confidence in economic stability, the possibility of further financial relaxation, and the possibility of expectations for major privatization measures.
According to Abdul Basit, an JS Research analyst, the advantage of the sharp wow was run by the heavyweight performance of the military fertilizer company (FFC), which added 1,821 points in the index, and the United Bank Limited (UBL) added 1,821 points, which added 1,821 points. The rally has come despite a 20 % decline in the daily business (ADTO), which reflects the activity of more target and selected investors.
One of the weekly progress was the current account data for June 2025, showing an additional $ 328 million. This increased the total account of the total account for the financial year 25 to 1 2.1 billion, which is the first annual in 14 years, while in the fiscal year 24, 7 2.07 billion in deficit. The improvement was widely driven by a record high remittances of US $ 38.3 billion, which increased by 27 % in the year (YOY), which identified the flexibility of Pakistan’s overseas manpower and the effectiveness of official remittance channels.
Pakistan’s economic progress, especially its structural reforms, expressed further expressing the satisfaction of the IMF. This confirmation increased investors’ confidence in the government’s policy direction and reform agenda.
Topline securities analyst Nabil Aaron echoed a positive outlook, saying that especially through local bilateral funds, continuing to buy institutional purchases played a key role in maintaining market pace.
He also pointed out the encouragement of fixed income market signals. In the auction of the Pakistan Investment Bond (PIB) held during the week, the government collected Rs 342 billion against the target of Rs 300 billion, which reduced the production of inflation and the improvement of the liquidity situation between 30 to 54 twenty points (BPS).
Other notable macroeconomic indicators released during the week included foreign direct investment (FDI) data, showing a $ 207 million arrival for June 2025, a slightly less than $ 217 million in May.
On the Industrial Front, the Pakistan Bureau of Statistics (PBS) reported that the large -scale manufacturing (LSM) index increased by 2.3 % YOY in May 2025. However, the total LSM activity is 1.2 % lower for the first 11 months of the financial year, which has been identified as the industrial sector identified.
The indicators of the auto sector continued to show strength. In June 2025, auto financing increased by 20 %, which reached Rs 277 billion, indicating the increase in consumer confidence and demand in the automotive segment.
In terms of external responsibilities, Pakistan faces more than $ 23 billion in external debt payments during fiscal year 26. However, the government expects one of them to be eliminated by friendly countries, which will reduce the immediate pressure on foreign exchange reserves. Meanwhile, the State Bank of Pakistan reserves remained stable for $ 14.5 billion a week.
Privatization efforts also gained traction. The purpose of the government is to finalize the privatization of Pakistan International Airlines (PIA) within the next two to three months. In addition, the EOIS will be invited in August (EOIS) in New York, as authorities try to receive tax through the sale of strategic assets. During the week, the daily commercial volume and price were Rs 763 million and 35.89 billion (6 126 million), respectively.
Looking forward, market participants expect stable investors to interest the current account of the current account, ease potential financial policy, and accelerate privatization. However, the focus will be on foreign funding arrangements, political stability, and global commodity prices trends, especially in oil, which can affect the direction of the future market.
