PSX ends slightly higher after hitting record peak

The equity market slightly higher on Tuesday, with the benchmark index trading firmly in the green for most of the session as institutional buying and upbeat investor sentiment kept the market buoyant.

“Investments from mutual funds is carrying market forward in light of good results, improving US relationships and macroeconomic rerating. Some positivity also expected due to circular debt resolution,” said AAH Soomro, an independent investment and economic analyst.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 147,005.32 points, up 75.48 points, or 0.05%, from the previous close of 146,929.84.

During the session, the index climbed to an intraday high of 147,976.98, gaining 1,047.14 points, or 0.71%, before retreating to a low of 146,894.62, reflecting a fall of 35.22 points, or 0.02%.

“Stocks closed to new all time high amid strong financial results and speculations over positive outcome of finer details on US investments under Pak US trade deal," said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"$3.2bn record remittances in July ‘25, rupee stability, and expectations for surge in exports on India US tariff conflict played catalyst role in record bullish activity at PSX,” he added.

Pakistan and the US are in the final stages of discussions to determine the finer details of their trade agreement, which includes investment flows, Bloomberg reported quoting State Finance Minister Bilal Azhar Kayani.

The government is seeking improved tariff concessions on select exports, building on last month’s 19% tariff agreement that came as ties between Islamabad and Washington warmed.

On the domestic policy front, the government has advanced power sector reforms, reducing circular debt by Rs780 billion to Rs1.6 trillion.

The National Assembly was informed that total circular debt stood at Rs2.47 trillion as of May 2025, with Rs1,275 billion being arranged through a six-year loan at 3-month KIBOR minus 0.9%, serviced via the existing Debt Service Surcharge (DSS) on electricity bills.

Measures to prevent its re-emergence include tariff renegotiations with IPPs, privatisation of four distribution companies, efficiency improvements to cut technical losses, and least-cost capacity additions.

Business sentiment has reached its most optimistic level in nearly four years, according to Gallup Pakistan’s Q2 2025 Business Confidence Survey. The ‘Direction of the Country Score’ improved to -2% from deeply negative levels in late 2024, with 46% of respondents rating the Pakistan Muslim League-Nawaz government’s economic management as better than its predecessor’s, up from 24% a year ago.

On Monday, the benchmark KSE-100 Index increased by 1,547.05 points, or 1.06%, to 146,929.84 points from 145,382.8 points recorded in the last session. The highest index of the day remained at 147,005.18 points, while the lowest level was recorded at 145,258.50 points.