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Digital monitor showing the share prices at the Pakistan Stock Exchange (PSX) in Karachi. — INP/File
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KARACHI: The stock market approach for next week is widely positive, investors have focused on the upcoming Monetary Policy Committee (MPC) meeting and corporate income season.
According to a research report by AKD Securities, the KSE -100 index is expected to reach 165,215 points from December 2025 from December 2025. And overall economic stability.
During the outgoing week, the Pakistan Stock Exchange (PSX) was largely bound, with the KSE -100 Index with volatility in a band of 2,053 points. In the absence of major triggers and the rollover of futures contracts, the benchmark index took a slight advantage of 610 points or 0.44 percent on a weekly week, which closed at 139,207 points.
However, the trade activity was suppressed, which reduced the market participation by 16.7 % and reduced the number of 635 million shares daily. The average daily trade prices also declined, which fell 20 % in the weekend to Rs 28.6 billion.
According to Nabeel Aaron, an analyst from Topline Securities, the behavior of cautious investors began the role of the July Future Agreement from the beginning of the income season, both affecting market sentiments.
On the economic front, important positive developments supported market confidence. In particular, S&P Global Ratings upgrades Pakistan’s long -term autonomous credit rating from CC+ to B. This upgrade resulted in the production of the Euro Bond reduced by 36 to 61 points (BPS). In the foreign exchange market, the Pakistani rupee praised the Saturday (Wah) on 0.5 percent of the week, which is closed at $ 283.45 per US-this is its strongest weekly performance in 93 weeks. This power was supported by the ongoing crackdown and regulatory surveillance in the illegal foreign exchange market.
At the latest Treasury Bill auction, the production of a month’s papers has dropped by 39bps to 10.85 %, which indicates the expectations of the financial softening market at the next MPC meeting on July 30, 2025. Analysts evaluate the deduction at a rate of 50bps, and refer to the geographical stress and simplify the geographical stress.
Consumer Price Index (CPI) inflation is expected to be 2.5 percent year (YOY) year, which will decrease by 3.2 percent in June. Meanwhile, the government has formed a task force that has a strategy to tackle the 2.8 trillion trillion gas sector circular loans, which includes the introduction of a special levy for trade loans and funds for payments.
Other important developments include the Asian Development Bank to revise Pakistan’s 25 GDP growth in the fiscal year, 2.7 %, the expansion of the International Monetary Fund Conditioning Tax Net Exploring 4.0 % of the Extra Sales Tax, and foreign investors withdraw $ 2.2 billion compared to the fiscal year.
The Economic Coordination Committee also approved Rs 100 billion for 50,000 low -income housing units.
Sector war, food, transportation, and auto collectors improved the wider market, which registered the weekly benefit of 6.2 %, 4.8 % and 4.2 % respectively. On the contrary, in vapori and its affiliated industries, wool, and leather sectors, with a decrease of 13.1 %, 7.3 %, and 4.3 % wow, respectively.
In terms of investors’ flow, foreign investors and other organizations were pure sellers, which offloaded an equity worth $ 7.6 million and $ 8.5 million, respectively. They were largely absorbed by mutual funds and individual investors, who recorded a net purchase of $ 7.8 million and $ 5 million respectively.
Overall, emotions in the equity market are cautiously, providing a support background for the weeks to come with strong economic signals and monetary expectations. Investors are likely to focus as a key driver with corporate income announcements and market speed on the direction of monetary policy.
