Aug 02, 2025

The KSE-100 Index surged 1,828 points (+1.3% WoW) to close at an all-time high of 141,035, driven by upbeat corporate earnings and renewed investor confidence following a trade agreement between Pakistan and the U.S. The deal is expected to reduce tariffs and attract fresh bilateral investments.

Sector-wise, Exploration & Production led the charge (+1,222pts), followed by Technology (+423pts) and OMCs (+324pts). Top scrip-wise gainers included OGDC (+642pts), SYS (+431pts), and PPL (+324pts). On the downside, ENGROH (-264pts) and EFERT (-191pts) weighed on the index.

The SBP maintained the policy rate at 11%, citing inflation and trade gap concerns, while CPI for Jul’25 rose to 4.1% YoY. The PKR appreciated 0.3% WoW to close at 282.72/USD. Tax collection in July surpassed targets, reaching PKR 754bn (+14% YoY).

Despite a dip in trading volumes (-11.6% WoW), average value traded rose by 26% to USD 126.6mn. With the market trading at a forward PER of 7.2x and a ~7% dividend yield, the outlook remains positive as earnings season continues.