Karachi, August 7, 2025: The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Thursday, with the benchmark KSE-100 Index closing at a new all-time high amid renewed investor confidence in improving macroeconomic indicators and robust corporate earnings.
The KSE-100 Index settled at 145,647.13 points, gaining 558.64 points or 0.39% from the previous close. During intraday trading, the index surged to a high of 146,081.02 points, up 992.53 points (0.68%), while touching a low of 145,250.17 points, still 161.68 points (0.11%) higher than Wednesday’s close of 145,088.49.
“Continued optimism for improving macros and corporate results are driving sentiment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
In the fixed income space, the government raised Rs370 billion through a Treasury bill (T-bill) auction on Wednesday, slightly below the Rs400 billion target and against maturities worth Rs544 billion. The auction saw yields rise across all tenors, indicating investor caution following the State Bank of Pakistan’s (SBP) recent decision to maintain the policy rate at 11%.
- 1-month T-bill yield rose by 5 basis points (bps) to 10.8996%
- 3-month T-bill yield increased by 15bps to 10.8502%
- 6-month T-bill yield climbed 17bps to 10.8739%
- 12-month T-bill yield jumped 30bps to 10.9999%
The SBP has left its key policy rate unchanged since a cumulative cut of 1,100bps from the record-high 22% in June 2024, reflecting easing inflation. However, renewed price pressures have tempered expectations of further monetary easing in the near term.
Amid constrained external financing, the government plans to raise Rs6.175 trillion from the domestic banking system between August and October 2025. This includes Rs3.675 trillion via T-bills and Rs2.5 trillion through Pakistan Investment Bonds (PIBs), highlighting the growing reliance on local resources to meet fiscal needs.
On the corporate front, MCB Bank Limited announced a second interim cash dividend of Rs9 per share (90%), bringing the total payout for the first half of 2025 to 180%. The decision was made during a Board of Directors meeting chaired by Mian Mohammad Mansha.
For the six months ending June 30, MCB reported:
- Profit before tax (PBT): Rs58.06 billion
- Profit after tax (PAT): Rs27.31 billion
- Earnings per share (EPS): Rs23.04, down from Rs26.95 in the same period last year
The bullish momentum followed Wednesday’s surge when the KSE-100 Index jumped 2,051.33 points (1.43%), closing at 145,088.49, up from 143,037.16. That session saw a high of 145,187.17 and a low of 143,409.59.
With improving fundamentals, easing inflationary pressures, and strong corporate performance, the KSE-100 continues to reflect investor optimism — though the upward trend remains sensitive to fiscal and policy developments in the coming weeks.
