Karachi: The stock market maintained its upward trend throughout the week, reaching a record high due to expectations of strong earnings during the ongoing results season. The market closed at 145,383 points, marking a 3.08% increase from the previous week despite a slight decline in the last trading session. Average daily trading volume also saw an increase, rising by 16.3% from the previous week.
The trade deficit for July 2025 reached $2.8 billion, a 44% increase year-over-year, while workers' remittances stood at $3.2 billion, a 7% increase. The State Bank of Pakistan's foreign exchange reserves decreased by $72 million, closing at $14.2 billion as of August 1. The Pakistani rupee appreciated by 0.1% against the US dollar, closing at PkR282.47.
Cement dispatches showed robust growth of 30% year-over-year for July 2025, while oil marketing company offtakes increased by 2% to 1.2 million tons. Internationally, the Trump administration imposed an additional 25% tariff on India, resulting in reciprocal tariffs reaching 50%.
Other significant developments included a 19% tariff imposed on Pakistan by the US, an increase in housing finance limits by the State Bank of Pakistan, and potential discussions with Qatar on LNG supplies. The budget deficit dropped to 5.4% in the fiscal year 2025 from 6.8% in the same period last year.
Sector-wise, Woollen, Jute, Insurance, Tobacco, and Food and Personal Care were among the top performers, while Synthetic and Rayon, Close-end Mutual Funds, Chemical, Sugar and Allied Industries, and Textile Weaving saw declines. Banks and DFIs recorded significant net selling, while mutual funds absorbed most of the selling.
Company-wise, AGL, NESTLE, UNITY, HBL, and BNWM were top performers, while GADT, PKGP, FABL, LCI, and IBFL were among the laggards.
Looking ahead, the market is expected to remain positive, driven by developments in circular debt and upcoming corporate results. The KSE100 is projected to continue its upward trajectory, with a target of 165,215 points by December 2025. Strong earnings in fertilizers, sustained returns in banks, and improving cash flows in exploration and production companies, along with oil marketing companies, are anticipated to drive this growth.
The top stock picks include OGDC, PPL, PSO, FFC, ENGROH, MCB, FCCL, KOHC, INDU, and SYS, as the market benefits from falling interest rates and economic stability.