Karachi: The stock market extended its upward trajectory this week, buoyed by anticipation of robust corporate earnings and a significant increase in worker remittances. The KSE-100 Index surged by 2,351 points, or 1.8%, ending the week at 134,300 points. Despite the gains, market participation saw a slight decline, with average daily traded volumes decreasing by 2.0% from the previous week.

Economic indicators painted a positive picture, with the government raising PKR 1.4 trillion from Treasury bills, while 12-month yields fell to 10.8%. Additionally, auto sales in June witnessed a 43% year-over-year increase, driven by pre-purchase activities ahead of a proposed GST hike on smaller vehicles.

On the fiscal side, the government utilized PKR 1,045 billion out of a budget allocation of PKR 1,100 billion for development projects. The State Bank of Pakistan also reported a week-on-week rise in foreign exchange reserves, which now stand at $14.5 billion.

Currency movements saw the Pakistani Rupee depreciate by 0.17% against the U.S. dollar, closing at 284.46 PKR/USD. Major developments during the week included early debt retirement by Pakistan, raising PKR 208 billion through floater PIBs, and a 7.22% rise in textile exports for the fiscal year.

Sectoral performance varied, with Woollen, Jute, and Textile sectors among top gainers, while ETFs and Technology lagged. Mutual Funds and Individuals were net buyers, whereas Companies and Banks emerged as net sellers.

Looking ahead, analysts expect the market to continue its positive momentum in the coming weeks, fueled by strong corporate earnings. The KSE-100 Index is projected to reach 165,215 points by December 2025, driven by growth in fertilizers, bank returns, and improving cash flows in the energy sector. Top stock picks include OGDC, PPL, PSO, and FFC.