The KSE-100 Index extended its upward trajectory this week, closing at an all-time high of 141,035 points, posting a WoW change of +1,828 points. The rally was fueled by renewed optimism around international cooperation and the ongoing result season.
- The United States and Pakistan on Thursday signed a new trade agreement, which is expected to reduce tariffs and boost bilateral investment.
- The SBP, however, held its policy rate steady at 11% this week, citing concerns about the inflation outlook and the widening trade deficit.
- The SBP’s foreign exchange reserves fell by USD 153mn, bringing the total down to USD 14.3bn on the week ending on 25th Jul’25.
- The price of MS decreased by PKR 7.54/litre to PKR 264.61/litre, while the price of HSD increased by PKR 1.48/litre to PKR 285.83/litre, effective from 1st August 2025.
- CPI for the month of Jul’25 clocked-in at 4.1% YoY compared to 3.2% in Jun’25.
- Tax collection increased by 14% YoY to PKR 754bn during Jul’25, exceeding the target of PKR 748bn by PKR 6.4bn.
- The PKR appreciated marginally by 0.3% WoW, closing at 282.72 against the USD.
- The index closed the week at 141,035pts, up from last week’s 139,207pts, marking a weekly gain of 1,828 points or 1.3% WoW.
Outlook and Recommendation
- Market activity is expected to remain earnings-driven as the results season continues next week, and we anticipate the market to maintain a positive tone.
- The KSE-100 Index is currently trading at a forward PER of 7.2x (2026) against its 10-year average of 8.0x, offering a compelling dividend yield of ~7.0% versus the historical average of ~6.5%. Our top picks include OGDC, PPL, MEBL, NBP, MCB, FFC, LUCK, FCCL, KOHC, PSO, HUBC, NML, AIRLINK, SYS, and ATRL.
Courtesy – AHL Research
