The Pakistan Stock Exchange closed the week on a strong note on Friday as the KSE-100 index surged 1.18% to reach an all-time high of 141,035 points. The bullish momentum was driven by investor optimism following a landmark reciprocal tariff deal with the United States, under which Pakistan’s exports would face a reduced 19% tariff, down from the earlier 29%.
The index also drew strength from expectations of a major circular debt clearance package, with the government reportedly seeking Rs1.25 trillion in bank financing to make upcoming payments.
Heavyweights such as Oil and Gas Development Company (OGDC, +9.73%), Pakistan Petroleum Limited (PPL, +7.05%), Hub Power (+4.71%) and Pakistan State Oil (PSO) led the rally, contributing a combined 1,355 points to the index. Traded volume rose to 609.7 million shares, with a total value of Rs50.6 billion, reflecting strong investor participation.
“Stocks closed at a new all-time high as investors weighed 4.1% year-on-year (YoY) inflation for July 2025,” said Ahsan Mehanti, Managing Director of Arif Habib Corp. The likely resolution of circular debt crisis amid government’s approval of a Rs1.275 trillion financial restructuring plan, the US tariff deal at 19%, giving an edge over regional peers, and a reduction in fuel prices played the role of catalysts in bullish activity at the PSX, he said. At the end of trading, the benchmark KSE-100 index posted a surge of 1,644.56 points, or 1.18%, and settled at 141,034.99.
Arif Habib Limited (AHL) remarked that the market witnessed a 140.5k weekly draw after briefly dipping into the 138.6k-139.4k support zone. A total of 60 stocks advanced while 39 dropped, with OGDC (+9.73%), PPL (+7.05%) and Hubco (+4.71%) driving the index gains. On the downside, Systems Limited (-2.81%), Engro Holdings (-1.07%) and Service Industries (-5.64%) were the major drags. The index posted a weekly gain of 1.3%.
July’s Consumer Price Index (CPI) rose to 4.1% YoY, up from 3.2% in June. In corporate developments, NexGen Auto, a Nishat Group unit, announced plans to set up a $100 million electric vehicle plant in partnership with China’s Chery Automobile, with production expected to begin in October, AHL mentioned.
“Bulls dominated the trading session as the KSE-100 increased 1.18% to close at its highest-ever level at 141,035,” Topline Securities said in its review. The positivity could be attributed to news that Pakistan secured a landmark tariff deal with the US, wherein Islamabad would now face reciprocal tariffs of 19% compared to the earlier rate of 29%, it said.
Apart from that, Topline added, the government would make payments to clear circular debt in the coming weeks by obtaining Rs1.25 trillion from banks, which would provide stimulus to the market.
Muhammad Hasan Ather of JS Global wrote that the KSE-100 rallied as it surged 1,645 points by the close of trading. Investor sentiment soared following the US decision to impose a reduced 19% reciprocal tariff on Pakistani goods.
Key sectors – cement, banks, fertiliser and energy – drove the rally, with heavyweights like Mari Petroleum and OGDC trading strongly. Looking ahead, if macroeconomic and trade conditions continue to improve, the PSX may sustain its bullish momentum in the near term, Ather said.
Overall trading volumes were recorded at 609.7 million shares, compared with the previous day’s tally of 577.3 million. Shares of 483 companies were traded. Of these, 199 stocks closed higher, 246 fell and 38 remained unchanged.
WorldCall Telecom was the volume leader with trading in 55.1 million shares, remaining unchanged at Rs1.46. It was followed by PPL with 43 million shares, gaining Rs11.97 to close at Rs181.78 and OGDC with 37 million shares, gaining Rs22.66 to close at Rs255.67. Foreign investors sold shares worth a net Rs613.6 million, the National Clearing Company reported.
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