PSX Hits All-Time High as Investor Confidence Surges on Corporate Earnings, Reforms

Karachi— The Pakistan Stock Exchange (PSX) kicked off the week with a record-breaking rally, as the benchmark KSE-100 Index surged to an all-time high, buoyed by robust corporate earnings, improving macroeconomic indicators, and optimism over structural reforms.

The KSE-100 Index settled at 148,196.42 points, gaining 1,704.79 points or 1.16% from Friday’s close of 146,491.63. The index touched an intraday high of 148,395.71, up 1.3%, and dipped to a session low of 146,403.64, reflecting a minimal decline of 0.06%.

“Stability, liquidity, good corporate results, upgrading of Pakistan’s ratings and expectations of tame inflation numbers are all contributing towards the market making new highs,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

Corporate Results and Economic Optimism Drive Rally

Investors were encouraged by strong quarterly results across several sectors, while the market also gained momentum from Moody’s recent upgrade of Pakistan’s credit rating from ‘Caa2’ to ‘Caa1’ with a stable outlook — a move that is expected to enhance the country’s ability to attract external financing. Earlier similar upgrades from Fitch and S&P had already bolstered sentiment.

The upcoming week is expected to remain bullish, with continued support from the earnings season and anticipated progress on reforms, including the long-awaited resolution of the circular debt issue. The power division is preparing to present its final debt re-profiling proposal with Chinese Independent Power Producers (IPPs), whose dues currently stand at Rs475 billion.

Liquidity and Remittances Support Market Fundamentals

Improved liquidity in the financial system also underpinned market performance. According to the State Bank of Pakistan (SBP), commercial bank deposits climbed to Rs33.756 trillion as of August 1, marking a 12.5% year-on-year increase. The uptick was driven by stronger remittances and a shift towards formal savings amid easing inflation and reduced cash hoarding.

Remittance inflows from overseas Pakistanis rose 7.4% year-on-year to $3.2 billion in July, the highest for the month on record, although down 6.0% from June.

Meanwhile, the SBP’s foreign exchange reserves rose by $11 million to $14.243 billion as of August 8. Total liquid reserves edged up by just $1 million to $19.497 billion, as reserves held by commercial banks slipped by $10 million to $5.254 billion.

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Weekly Recap

Friday’s session had ended on a minor decline, with the KSE-100 falling 37.67 points or 0.03%. However, the index posted a solid 1,109-point or 0.76% gain over the course of last week, signaling strong underlying momentum.

Outlook

With investor confidence high and several structural reforms in motion, analysts expect the bullish trend to continue in the near term. Focus remains on upcoming corporate disclosures, progress on energy sector reforms, and further government clarity on industrial policy — particularly the proposed phasing out of the controversial super tax.