Stocks likely to stay positive amid strong earnings outlook

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KARACHI: The Pakistan Stock Exchange (PSX) has increased its pace in the second week of fiscal year 26, in which the Benchmark’s SE -100 index increased by 2,351 points to get 134,299, which reflects a 2.0 % increase in weekly week (Wah).

Analysts expect positive emotions released next week, supporting the record -breaking remittances, raising foreign exchange reserves and better economic indicators. The focus of investors will probably remain on corporate income, planned panda bond issuance, and further progress on foreign funding and loan management.

JS Research analyst Syed Daniel Hussain supported the rally for several favorable economic progress. Of these, Pakistan received the highest annual workers remittances so far, which was a total of $ 38.3 billion for the financial year, which is 27 % higher for the year. In June alone, the arrival of 4 3.4 billion was seen, an increase of 8.0 % over the same month of the same year. The flow significantly reinforced the country’s external status, lifting the investors’ confidence.

In addition, the State Bank of Pakistan (SBP) reported that its foreign exchange reserves reached $ 1.8 billion to reach $ 14.5 billion for the week ended July 4, with a height of 39 months. With the inclusion of commercial bank reserves, the country’s total foreign reserves have now crossed the $ 20 billion mark for the first time in three years.

The average daily trade volume in PSX was 948 million shares, while the price of the trade reached Rs 38.8 billion. Despite the sharp rally, the average daily business (ADTO) reduced the 2.0 % wow, which suggests cautious participation after approaching the fresh height.

Nabil Aaron, analist of the Topline Securities, noted that the KSE -100 index increased by 1.78 %, which is driven by a large -scale local bilateral funding. From the month, modern, local mutual funds have recorded a net arrival of 30 million, which reflects a strong domestic institutional interest among the climate of investment caused by fixed revenue reduction.

One of the weekly highlights of the week was the T -Bill auction, where investors participated in Rs 2.7 trillion. The government successfully increased Rs 1.41 trillion, which dropped by 13 twenty points at a 12 -month dissertation, which is an indication of market expectations for further financial softening.

Another positive driver was a significant recovery in automobile sales. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), cars sales recorded a record of 38 % increase in fiscal year 25, which identified the rising consumer confidence and purchase strength.

Investors also responded positively to the news of a financial institution based in Dubai, which has arranged Billion 1 billion financial support for Pakistan, and reports of possible progress in trade talks with the United States at mutual rates. This progress recommends better bilateral cooperation and easy access to external funding.

On financial matters, the government reported a preliminary retirement of Rs 1.5 trillion in public loans during the financial year 25, which has reduced the proportion of GDP from 75 % in the financial year 23. This development indicates an important milestone in financial stability and indicates the administration’s commitment to the responsible loan management.

Meanwhile, the preparations for the release of Pakistan’s first Panda Bond are developing, to finalize arrangements with high -level meetings in China this week. The bond, which will be expected later this year, will help to diversify Pakistan’s financing sources and strengthen the stability of its external account.

Looking forward, analysts expect the market to maintain its top speed, supported by strong macroeconomic back drop, expected financial softening and anticipated corporate income announcements. However, investors will monitor political progress, flow of external financing and global oil prices, which can create emotions in the near term.