PSX's record rally continues on low deficit
The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Tuesday, with the benchmark KSE-100 index climbing 985 points to close at an all-time high of 143,037.
The surge was fuelled by robust local and foreign inflows, broad gains across key sectors and positive fiscal data. Pakistan's fiscal balance improved sharply in FY25, recording a deficit of 5.38%, the lowest in nine years. It reinforced investor confidence and heightened optimism for the rest of the week.
Ahsan Mehanti of Arif Habib Corp commented that stocks reached a new all-time high due to a strong earnings outlook. The government's approval of subsidies for the fully funded remittances scheme to ensure rupee stability, Nepra's hint at a negative industrial tariff adjustment and speculation about steps to settle circular debt in the power sector drove the bullish close at the PSX, he said.
In its review, Topline Securities remarked that bulls continued to charge ahead as KSE-100 touched another record high, building on the previous day's momentum. The index soared to intra-day peak of 1,229 points, before settling at 143,037, higher by 985 points (+0.69%).
Investor confidence remained buoyant, fuelled by robust local and foreign inflows and broad-based sector-specific rallies. Sentiment further strengthened as Pakistan reported a nine-year low fiscal deficit of 5.38% for FY25, with 36% year-on-year revenue growth outpacing an 18% rise in expenditures, beating both the government and IMF's 5.6% deficit forecast, Topline mentioned.
The market's upward trajectory reflects optimism about fiscal discipline, macroeconomic stability and a strong earnings outlook, setting the stage for a sustained momentum in the sessions ahead, it added.
In its commentary, Arif Habib Limited (AHL) observed that further upside could propel KSE-100 beyond 143,000, bringing it closer to the 145,000 weekly target. Some 55 shares rose while 45 fell, with Fauji Fertiliser Company (+2.08%), MCB Bank (+2.33%) and UBL (+1.03%) contributing the most to index gains. On the flip side, Pakistan Petroleum (-1.27%), Bank AL Habib (-1.14%) and PSO (-1.24%) were the biggest drags, it said.
Additionally, cement dispatches in July 2025 increased 30.1% year-on-year to 4 million tonnes, up from 3.1 million tonnes in July 2024. Going forward, industry dynamics are expected to remain favourable, supported by construction activity, particularly as infrastructure and private housing projects are likely to pick up pace post-monsoon.
Export momentum is likely to remain strong, given Pakistan's competitive clinker pricing in regional markets, while improved local demand should sustain high plant utilisation levels. Overall, these factors are expected to drive steady dispatch growth in the near term, AHL added.
JS Global analyst Muhammad Hasan Ather stated that the KSE-100 index surged 0.7% to a record close at 143,037, driven by a strong corporate outlook, robust cement sector demand and renewed investor confidence following a reduction of Rs780 billion in power sector arrears.
Improved liquidity, fiscal consolidation and sector-specific optimism, especially in cement and energy, are fuelling the bullish momentum. Barring external shocks, the upward trend is expected to continue, supported by earnings growth and improving macroeconomic indicators, Ather said.
Overall trading volumes decreased to 549.7 million shares compared with Monday's tally of 666.4 million. Traded value decreased to Rs37 billion compared to Rs42.9 billion in the previous session. Shares of 484 companies were traded. Of these, 239 stocks closed higher, 217 dropped and 28 remained unchanged.
Fauji Cement was the volume leader with trading in 31.7 million shares, gaining Rs1.86 to close at Rs49.51. It was followed by First Dawood Properties with 24.8 million shares, gaining Rs1 to close at Rs6.98 and Invest Bank with 18.1 million shares, gaining Rs0.29 to close at Rs7.77. Foreign investors sold shares worth Rs568.7 million, the National Clearing Company reported.
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