Equities hit all-time high despite economic concerns amid floods

The Pakistan Stock Exchange (PSX) has marked a significant milestone, closing at an all-time high of 158,037 points, reflecting a week-on-week gain of 2.3 per cent. This performance, achieved largely through institutional buying, signals strong investor confidence. Despite a challenging economic backdrop, including the ongoing floods and a decline in foreign direct investment (FDI), liquidity continues to support the market’s upward trajectory. Several developments contributed to the positive sentiment during the week. The current account deficit (CAD) for August narrowed to $245m, down from $379m in July, indicating a modest improvement in the external account. However, FDI dropped significantly, falling 30pc month-on-month and 45pc year-on-year, totalling $114m. On a more positive note, Large-Scale Manufacturing Index (LSMI) showed an 8.99pc year-on-year increase in output for July, with a month-on-month rise of 2.6pc.