PSX rebounds on strong macroeconomic indicators, bank gains
"This rally will mature to form a new base above 130,000," says analyst
July 10, 2025
- The KSE-100 Index closed at 133,782.34, up 1,205.36 points, or 0.91%.
- The index hit an intraday high of 133,902.34, gaining 1,325.36 points, or 1%.
- The session’s low was recorded at 132,467.12, still up 518.06 points, or 0.39%.
The bourse bounced back on Thursday, led by gains in the banking sector and strong macroeconomic indicators, as investors reacted positively to record-high remittances and upbeat results from the government’s latest debt auctions.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged by 1,205.36 points, or 0.91%, to close at 133,782.34 points, up from the previous close of 132,576.98.
During the session, the index gained 1,325.36 points, or 1%, to touch an intraday high of 133,902.34 points, up from the previous close of 132,576.98. The index hit a low of 132,706.02 during the session before rallying.
“Overall improvement in macroeconomic indicators is rerating the market with rise in banks leading the index," said independent investment and economic analyst AAH Soomro. "This rally will mature to form a new base above 130,000,” he added.
Investor confidence was buoyed by data from the State Bank of Pakistan (SBP) showing workers’ remittances hit an all-time high of $38.3 billion in FY2025 — a 26.6% year-on-year increase.
In June alone, remittances stood at $3.4 billion, up 7.9% from a year earlier. Although monthly inflows dipped 8% from May, the annual total surpassed both the official $38 billion target and the country’s export earnings of $32.1 billion.
The SBP’s foreign exchange reserves rose by $5.12 billion in FY25 to $14.51 billion, nearly five times higher than levels seen at the start of 2023. The average monthly remittances during FY25 stood at $3.19 billion, compared to $2.52 billion in FY24.
Separately, the government raised Rs1.41 trillion through Treasury bill auctions, exceeding its Rs1.35 trillion target. Yields on the one-month paper rose by 24 basis points to 11.2403%, while yields on other tenures remained steady or declined slightly.
In the auction for floating-rate Pakistan Investment Bonds, Rs208 billion was raised against Rs300 billion target amid strong investor participation.
On Wednesday, the KSE-100 Index had declined by 826.21 points, or 0.62%, to settle at 132,576.98 points. The highest index of the day remained at 133,566.38 points, while the lowest level was recorded at 132,326.18 points.
