AZEE News Desk – July 26, 2025

The Pakistan Stock Exchange (PSX) ended the week on a positive note, with the KSE-100 Index gaining 610 points (+0.4% WoW) to close at 139,207. Investor sentiment remained upbeat, fueled by expectations of a 50bps interest rate cut in the upcoming Monetary Policy Committee meeting on July 30.

The rally was further supported by S&P Global's upgrade of Pakistan’s sovereign credit rating to ‘B-’ with a Stable outlook, reflecting macroeconomic stability and progress on reforms.

Strong corporate earnings also played a key role, with notable contributions from ENGROH, UBL, LUCK, HUBC, and PPL. On the flip side, FFC, PSEL, and UBL dragged the index.

In the latest T-Bill auction, SBP raised PKR 424.4bn, while yields declined by 10–39bps. Repatriated profits in Jun’25 dropped 72.4% YoY to $114.2mn, though FY25 figures remained flat at $2.2bn.

Power generation rose 2.1% YoY in June, while oil and gas production declined by 12% and 7% respectively in FY25. SBP reserves fell $69mn to $14.46bn, while the PKR appreciated 0.5% WoW to 283.45/USD.

Trading activity remained steady with 634.8mn shares exchanging hands; value traded dropped 20% WoW to $100.5mn. Foreign investors sold shares worth Rs132.6mn.

Valuations remain attractive with the market trading at a forward PER of 7.1x and a dividend yield of 7.2%. Analysts expect continued positivity, supported by monetary easing and strong results season.