The Pakistan Stock Exchange (PSX) is likely to maintain a positive trend in the coming weeks, driven by expectations of strong corporate earnings acting as a key catalyst for equities, according to a note by AKD Research.
The brokerage firm forecasts that the KSE-100 is expected to maintain its upward trajectory, with a target of 165,215 points by December 2025, primarily driven by strong earnings in fertilizers, sustained ROEs in banks, and improving cash flows in exploration and production (E&P) and oil marketing companies (OMCs), benefiting from falling interest rates and economic stability.
According to the brokerage note, the PSX sustained its bullish momentum throughout the week in anticipation of strong earnings ahead of the start of the result season. Consequently, the market reached its all time high closing of 138,665 points on Thursday, closing the week at 138,597 points, with a meager decline in the last trading session.
However, market participation declined, with average daily traded volumes falling by 19.5% WoW to 763 million shares, down from 948 million shares in the previous week.
On the macroeconomic front, for the first time in 14 years, Pakistan posted a current account surplus of $2.1 billion compared to a deficit of $2.1 billion during the same period of last fiscal year. Alongside, Pakistan’s IT exports for FY25 increased by 18% YoY, clocking in at $3.8 billion compared to $3.2 billion during the same period of last year. The Large-scale Manufacturing Industry (LSMI) witnessed an increase of 2.3% YoY in May 2025.
With regards to sectoral developments, fertilizer offtakes showed improvement for the second consecutive month, with urea sales increasing by 21% YoY during June 2025.
Additionally, auto financing for June 2025 reached PKR 277 billion, up 1.98% MoM, marking an increase for the seventh consecutive month. Moreover, SBP-held reserves increased by $23 million WoW, ending the week at $14.5 billion as of July 17, 2025.
On the currency front, the PKR depreciated against the greenback during the week, closing at PKR 284.87/US$.
Other major news during the week included: 1) Telecom sector welcomes ADB’s call for lower taxes, 2) Pakistan-Afghanistan trade hits US$1.0 billion in 1H CY25, 3) Banking sector deposits rise to PKR 35.498 trillion in June 2025, 4) China says ready to deepen ties with Pakistan in agriculture, industry, and mining, and 5) Cabinet approves 15% hike in EOBI pensions.
Sector-wise, Vanaspati & Allied Industries, Property, Miscellaneous, Fertilizer, and Investment Banks/Investment Companies/Securities Companies were among the top performers, up 14.9%/12.7%/12.4%/11.1%/7.3% WoW. On the other hand, Jute, Woollen, Textile Spinning, Engineering, and Leather & Tanneries were among the worst performers, with declines of 13.2%/6.8%/5.1%/4.1%/3.7% WoW, respectively.
In terms of flow, major net selling was recorded by Banks/DFIs with a net sell of US$34.0 million. On the other hand, individuals absorbed most of the selling with a net buy of US$22.3 million.
Company-wise, top performers during the week included: 1) PSEL (up 55.4% WoW), 2) ABL (up 23.3% WoW), 3) JVDC (up 18.6% WoW), 4) FFC (up 15.7% WoW), and 5) PIBTL (up 13.5% WoW). The top laggards were: 1) SEARL (down 9.1% WoW), 2) KOHC (down 7.5% WoW), 3) BNWM (down 6.8% WoW), 4) NATF (down 6.4% WoW), and 5) INIL (down 6.1% WoW).
