The Pakistan Stock Exchange (PSX) continued its strong upward trend on Thursday, driven by a sharp rise in foreign exchange reserves and massive mutual fund investments. The KSE-100 Index surged by 2,285.53 points, closing at 138,665.49, marking a 1.68% gain compared to the previous day’s close of 136,379.96.
📈 Market Momentum Fueled by Positive Economic Signals
The stock market rally came as investor confidence grew, supported by a record-high increase in Pakistan’s foreign reserves and a shift in mutual fund flows into equities.
“Over $50 million has been moved into the stock market by mutual funds, especially after the budget raised taxes on money market returns,” said economic analyst AAH Soomro. “This liquidity-driven rally is expected to continue beyond the 140,000-point mark,” he added.
💰 KSE-100 Hits Intraday High Near 139,000 Points
During Thursday’s trading session:
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The index hit a high of 138,943.47 points, showing a gain of 2,563.51 points (1.88%)
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The lowest level of the day stood at 136,674.98 points, still up by 295.02 points (0.22%)
🏦 SBP Foreign Reserves Surge Past IMF Target
Investor optimism was further supported by the State Bank of Pakistan’s (SBP) announcement that its foreign exchange reserves had jumped to $14.51 billion at the end of FY2025—surpassing the IMF’s target of $13.9 billion.
This marks a sharp improvement from the $9.39 billion recorded on June 30, 2024, driven by:
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Improved current account performance
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Planned financial inflows, including:
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$3.10 billion in commercial borrowing
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Over $500 million from international lenders
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A $3.4 billion Chinese loan rollover, boosting confidence
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Of the Chinese package:
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$1.3 billion was a refinancing of loans already repaid
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$2.1 billion were previously held reserves, now renewed
📊 Steady Gains Continue Throughout the Week
On Wednesday (July 16), the KSE-100 had already shown positive momentum, rising by:
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440.1 points (0.32%) to close at 136,379.96
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The day’s highest level reached 137,232.11, while the lowest dipped to 135,542.89
🔍 Key Takeaways for Investors
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Mutual fund inflows into stocks are rising due to tax changes
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SBP reserves exceed IMF expectations, boosting market confidence
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Liquidity and foreign funding are driving upward momentum
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KSE-100 is likely to test the 140,000-point barrier soon
