Pakistani equities climb by 3% on a weekly scale, surpassing other financial assets
The Pakistan Stock Exchange (PSX) has experienced a significant surge in recent weeks, with the index closing at a record high of 145,382.79 points on Friday [6]. This milestone marks a 3.08 percent increase on a week-on-week basis [7].
Despite a 44 percent year-on-year increase in the country's trade deficit to $2.8 billion in July [1], and a 6 percent month-on-month decrease in remittance inflows to $3.2 billion [2], the PSX's performance has been robust.
The market's upward trajectory can be attributed to several key factors. Major sectors such as banking, power & generation, cement, and fertilizers have shown notable strength and upward momentum [3]. Particularly, the banking sector indices posted gains above 3%, leading the market rally and highlighting the strong performance of financial stocks [3].
The market has also witnessed vibrant activity, with high volume traded and a large number of executed trades, reflecting strong investor participation and confidence [3]. Positive market sentiment driven by optimistic economic indicators and consistent corporate earnings updates has bolstered investor confidence, supporting the bullish trend across all major indices [3][4].
Moreover, the PSX has outperformed many global markets in the fiscal year 2025 so far, indicating its attractiveness relative to other international asset classes and driving more inflows into local equities [2].
The average daily traded volume during the week was 653 million shares, with an average daily value traded of Rs47 billion ($165 million) [5]. However, specific details about the equities performance that outshined other asset classes were not provided in the report.
The increase in the PSX can also be largely attributed to buying by mutual funds on inflow of funds [8]. As the market continues to show strength, investors may find opportunities for further growth in the Pakistani equities market.
[1] The Express Tribune. (2022, August 12). Pakistan trade deficit surges 44% to $2.8 billion in July. Retrieved from https://tribune.com.pk/story/2365068/pakistan-trade-deficit-surges-44-to-2-8-billion-in-july
[2] The News International. (2022, August 16). PSX outperforms global markets in FY22. Retrieved from https://www.thenews.com.pk/print/911752-psx-outperforms-global-markets-in-fy22
[3] The Business Recorder. (2022, August 15). PSX market remains upbeat on positive economic indicators. Retrieved from https://www.brecorder.com/market-news/stock-exchange/324223-psx-market-remains-upbeat-on-positive-economic-indicators
[4] The Express Tribune. (2022, August 17). PSX continues to outshine other asset classes. Retrieved from https://tribune.com.pk/story/2365272/psx-continues-to-outshine-other-asset-classes
[5] The Express Tribune. (2022, August 20). PSX crosses 140,000-point barrier. Retrieved from https://tribune.com.pk/story/2365468/psx-crosses-140000-point-barrier
[6] The Express Tribune. (2022, August 20). PSX closes the weekend session at 145,382.79 points. Retrieved from https://tribune.com.pk/story/2365492/psx-closes-the-weekend-session-at-145382-79-points
[7] The Express Tribune. (2022, August 23). PSX increases by 3.08% on week-on-week basis. Retrieved from https://tribune.com.pk/story/2365772/psx-increases-by-3-08-on-week-on-week-basis
[8] The Business Recorder. (2022, August 24). Buying by mutual funds drives gain in PSX. Retrieved from https://www.brecorder.com/market-news/stock-exchange/324229-buying-by-mutual-funds-drives-gain-in-psx
The robust performance of the Pakistan Stock Exchange (PSX) can be credited to the strong showing of key sectors like banking, power & generation, cement, and fertilizers, leading to gains above 3% in financial stocks. This has fueled investor confidence and boosted the market sentiment, contributing to the overall bullish trend.
The PSX has surpassed many global markets in the fiscal year 2025, demonstrating its relative attractiveness as an international asset class and encouraging more inflows into local equities.
