PSX hits all-time high on US tariff deal, circular debt hopes

KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index surged 1.18 per cent to close at a record high of 141,034 points, fuelled by optimism over a favourable US tariff deal and expectations of progress on circular debt resolution.

Market sentiment was buoyed by news that Pakistan had secured a “landmark” trade agreement with the United States, under which its exports would now face reciprocal tariffs of 19 per cent, down from the previous 29 per cent.

Speculation that the government plans to inject PKR 1.25 trillion—raised through bank financing—to address the circular debt issue also added to the bullish mood, according to Topline Securities.

“Stocks closed at a new all-time high as investors weighed CPI inflation at 4.1 per cent year-on-year for July 2025,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

He added that the US tariff cut, easing inflation due to lower fuel prices, and expectations around a Rs1.275 trillion financial restructuring plan played a catalytic role in driving market activity.

The session opened with mild volatility amid lingering concerns over Trump-era tariffs, but sentiment improved on reports of a likely breakthrough in the circular debt crisis—keeping energy sector stocks in focus, according to Ismail Iqbal Securities.

Oil and gas exploration firms, commercial banks, and oil marketing companies were the major gainers, jointly contributing 1,512 points to the index.

Top contributors included OGDC, PPL, HUBC, and PSO, collectively adding 1,355 points as they are expected to benefit from the anticipated debt clearance.

In terms of traded value, OGDC led with Rs9.19 billion, followed by PSO (Rs8.60 billion) and PPL (Rs7.72 billion).

Overall, trading volume stood at 607 million shares with a total value of PKR 50.5 billion.