The equity market soared past 146,000 mark on Thursday, fuelled by strong corporate earnings, stable policy signals, and renewed investor appetite.
“Continued optimism for improving macros and improving corporate results are driving sentiment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 146,081.02 points, gaining 992.53 points, or 0.68%, while touching a low of 145,250.17 points, up 161.68 points, or 0.11%, from the previous close of 145,088.49.
In the fixed income market, the government raised Rs370 billion through the auction of market Treasury bills (T-bills) on Wednesday — below the target of Rs400 billion and against maturities worth Rs544 billion.
The auction saw yields rise between five to 30 basis points (bps) across all tenors, signalling investor caution following the State Bank of Pakistan’s (SBP) recent decision to hold interest rates steady.
The cut-off yield for the one-month T-bill rose 5bps to 10.8996%, while the three-month paper increased by 15bps to 10.8502%. The six-month T-bill yield stood at 10.8739%, up 17bps from the previous auction. The 12-month paper saw the steepest jump, with yields rising 30bps to 10.9999%.
The SBP has kept the policy rate unchanged at 11% since its last meeting, after a cumulative cut of 1,100bps from a record high of 22% in June 2024 as inflationary pressures began to recede. However, renewed inflation concerns have tempered expectations for further easing in the short term.
The government, meanwhile, plans to borrow Rs6.175 trillion from the domestic banking system between August and October through a mix of T-bills and Pakistan Investment Bonds (PIBs), underscoring its growing dependence on local sources amid limited external financing options. It aims to raise Rs3.675 trillion via T-bills and Rs2.5 trillion through PIBs.
On the corporate front, MCB Bank Limited’s Board of Directors, chaired by Mian Mohammad Mansha, approved a second interim cash dividend of Rs9 per share (90%).
This takes the total payout for the first half of 2025 to 180%. The bank posted a profit before tax (PBT) of Rs58.06 billion for the six months ending June 30, while profit after tax (PAT) came in at Rs27.31 billion. Earnings per share (EPS) stood at Rs23.04, down from Rs26.95 in the same period last year.
On Wednesday, the KSE-100 had jumped by 2,051.33 points, or 1.43%, to settle at a record high of 145,088.49, up from 143,037.16. The index touched a session high of 145,187.17 and a low of 143,409.59.
