Moaaz Manzoor

The Pakistan Stock Exchange (PSX) ended the outgoing week at an all-time high, with the benchmark KSE-100 Index soaring 4,220 points, or 2.67% week-on-week, to close at 162,257. The strong rally was led by energy and banking stocks, reflecting renewed investor confidence and optimism about structural reforms. Trading remained brisk throughout the week. Average volumes increased by 8.3% WoW to 1,671 million shares, although the average traded value dipped 19.6% WoW to USD213.3 million.

Sector-wise performance showed Exploration and Production (E&Ps) leading with a contribution of 1,084 points, followed by Banks (955 points), Power (888 points), Investment Banks (455 points), and Cement (221 points). Negative contributions came from Glass and Ceramics, Automobiles, Sugar, Fast-Moving Consumer Goods (FMCGs), and Leather & Tanneries, although their drag on the index was relatively minor.

On the scrip level, HUBC emerged as the top performer, adding 802 points. It was followed by MARI (539 points), ENGROH (438 points), PPL (401 points), and HBL (336 points). On the other hand, LUCK pulled the index lower by 259 points, while TRG, TGL, MTL, and PKGP also posted modest declines.

Arif Habib Limited noted that momentum during the week was underpinned by major developments on the economic and policy front. A key driver was the circular debt resolution agreement signed on September 24, which unlocked a PKR1.225 trillion bank loan at KIBOR minus 0.9%. Circular debt stood at PKR1.6 trillion in July 2025, down significantly from PKR2.3 trillion a year earlier, signaling progress in energy sector reforms.

External accounts also provided support. Pakistan’s foreign exchange reserves rose to USD19.79 billion, showing an increase of USD58 million WoW, with the State Bank of Pakistan’s reserves standing at USD14.38 billion. Meanwhile, the Pakistani rupee appreciated slightly by 0.03% to close at 281.37 against the US dollar.

Energy output showed improvement, further boosting sentiment. Oil production increased 2.7% WoW to 64,313 barrels per day, while gas output rose 2.8% WoW to 2,812 mmcfd, supported mainly by higher flows from Sui, Makori East, and Kandhkot fields. In August, crude oil imports declined by 16.3% year-on-year due to lower volumes and prices, but petroleum product imports rose by 3.8% YoY.

Diplomatic developments also played a role in driving optimism. Prime Minister Shehbaz Sharif’s meeting with US President Donald Trump on September 25, coming shortly after the signing of MoUs on critical minerals, raised hopes of greater international investment in Pakistan.

Market experts described the week as a turning point. Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, termed it a “historical session,” saying: “The closing of the market was record-high and historical. The economic team of the government, SIFC, and our military leadership met with President Trump last Thursday, and its impact on the market showed a very good trend on Friday. Basically, investors' confidence is high. All these things, including sentiments, matter a lot.

Moreover, the Prime Minister and Field Marshal’s visit to the US was given a lot of acceptance internationally. Definitely, it will pave a path for the future. Technically, it was a good, historical week.”

Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, said the KSE-100’s performance was broad-based. “The KSE-100 closed the week at 162,257, gaining 4,220 points (2.7% WoW), supported by strength in Power, E&Ps, Pharma, Refinery, and Cement. Moreover, sentiment was lifted by the circular debt resolution agreement,” he observed.

Credit: INP-WealthPk