by The Pakistan Stock Exchange (PSX) surged past the 133,000-point mark for the first time in history on Monday, July 8, 2025, as bullish sentiment gripped investors amid strong performance by banking stocks and improved macroeconomic indicators.
Market Recap: A Historic Day for PSX
The benchmark KSE-100 index gained over 800 points during the session, closing at a record high of 133,400 points. This historic rally reflects renewed investor confidence, bolstered by clarity on the government’s economic direction, strong corporate earnings, and the recent appreciation of the Pakistani rupee.
Banking Sector Leads the Charge
The rally was largely driven by heavy buying in the banking sector. Major banks like HBL, MCB, UBL, and Bank Alfalah witnessed strong gains on expectations of higher interest income following the central bank’s policy stability and anticipated monetary easing in the coming months.
Investors are also optimistic about banking profitability, with many institutions reporting double-digit growth in quarterly earnings. With the sector’s robust capitalization and a growing deposit base, financial stocks remained a safe haven amid market volatility.
PSX Crosses 133,000 Milestone as Banking Stocks Drive Rally.
Macroeconomic Factors Support Sentiment
Recent developments have supported a positive market outlook:
- The IMF’s approval of a new extended loan program.
- Stable inflation and declining external deficits.
- Strengthening foreign exchange reserves.
- Improved performance of the Pakistani rupee.
Additionally, ongoing talks of privatization and structural reforms in the energy and SOE sectors have added to market optimism.
Foreign Investment and Institutional Buying
Another key driver of the rally was renewed foreign interest in Pakistan’s capital market. Net foreign inflows were recorded across multiple sectors, particularly banking, cement, and technology. Institutional investors also returned strongly to the market, signaling long-term confidence.
Outlook: Bullish but Cautious
While the market outlook remains broadly bullish, analysts advise caution due to potential profit-taking in the coming sessions and global market uncertainties. Geopolitical risks, oil price fluctuations, and domestic political stability remain factors to watch.
Conclusion
The PSX’s landmark crossing of the 133,000 level marks a significant moment for Pakistan’s capital markets. With key sectors like banking leading the rally, and investor sentiment remaining upbeat, the momentum could continue — provided that macroeconomic stability and reform implementation stay on track.
