Pakistan’s KSE-100 rises 0.2% to 149,152 after open

Pakistan’s KSE-100 rises 0.2% to 149,152 after open

The Pakistan Stock Exchange (PSX) benchmark KSE-100 index opened with a 0.2% gain, reaching 149,152 points on July 2, 2025. This rise follows a period of market volatility and significant economic developments in Pakistan.

The KSE-100 index, which tracks the performance of the top 100 companies listed on the PSX, has shown resilience despite recent economic challenges. The index's performance reflects the broader market sentiment, influenced by various factors such as interest rate policies, economic growth projections, and geopolitical events.

One notable event that has impacted the market is the unexpected halt in the easing cycle by Pakistan’s central bank. The central bank kept its key policy rate at 12%, which has had a mixed impact on market sentiment. While some investors view this as a sign of stability, others are concerned about the potential for higher borrowing costs [1].

Additionally, the KSE-100 index has been affected by the recent IMF bailout deal. The International Monetary Fund (IMF) agreed to provide Pakistan with a $7 billion loan over 37 months, which has boosted investor confidence and led to record highs in the stock market. However, the bailout also comes with conditions, including a tax hike on farm income, which could potentially impact the broader economy [2].

Investors are also keeping a close eye on the upcoming IPO lock-in expirations. Between August 25 and November 27, 2025, 57 companies will unlock shares valued at USD 20 billion. While not all shares will be sold, the significant releases could add liquidity to the market and influence the index's performance. Companies such as Ather Energy and Borana Weaves are expected to see their shares unlocked during this period [2].

Overall, the KSE-100 index's performance on July 2, 2025, reflects a mix of market sentiment and economic developments. Investors are advised to stay informed about these factors and consider their investment strategies accordingly.

References:

[1] https://www.investing.com/indices/karachi-100
[2] https://www.livemint.com/market/ipo/ipo-lock-in-of-57-companies-to-expire-in-3-months-20-billion-shares-to-flood-stock-market/amp-11756112289663.html