PSX Rallies Past 138,000 as Mutual Fund Inflows & Forex Reserves Spark Bullish Trend
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PSX Rallies Past 138,000 as Mutual Fund Inflows & Forex Reserves Spark Bullish Trend

Jul 17, 2025

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:

  • The index hit a high of 138,943.47 points, showing a gain of 2,563.51 points (1.88%)

  • 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:

  • Improved current account performance

  • Planned financial inflows, including:

    • $3.10 billion in commercial borrowing

    • Over $500 million from international lenders

    • A $3.4 billion Chinese loan rollover, boosting confidence

Of the Chinese package:

  • $1.3 billion was a refinancing of loans already repaid

  • $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:

  • 440.1 points (0.32%) to close at 136,379.96

  • The day’s highest level reached 137,232.11, while the lowest dipped to 135,542.89


🔍 Key Takeaways for Investors

  • Mutual fund inflows into stocks are rising due to tax changes

  • SBP reserves exceed IMF expectations, boosting market confidence

  • Liquidity and foreign funding are driving upward momentum

  • KSE-100 is likely to test the 140,000-point barrier soon

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