Moaaz Manzoor

The Pakistan Stock Exchange (PSX) ended the previous week on a strong note, with the benchmark KSE-100 Index closing at 168,990 — up 6,733 points or 4.15% week-on-week (WoW). The index touched a historic intraday high of 169,989 before settling just below the symbolic 169k milestone.

Trading activity showed mixed signals as average weekly volumes dropped 11.2% WoW to 1,484 million shares, while the average traded value rose 20.3% WoW to USD 256.7 million, reflecting sustained institutional flows. In the T-Bill auction, yields increased by 19–40 basis points, with the State Bank of Pakistan (SBP) raising PKR 730.4 billion against a target of PKR 750 billion amid strong participation of PKR 1,494.7 billion.

Pakistan’s foreign exchange reserves inched up to USD 19.80 billion, with SBP reserves at USD 14.40 billion, while the rupee appreciated slightly by 0.03% to 281.37 against the dollar. On the economic front, CPI inflation rose to 5.6% year-on-year (YoY) in September 2025 compared to 3.0% in August. The trade deficit widened to USD 3.3 billion in September, taking the 1QFY26 deficit to USD 9.4 billion, up 32.9% YoY.

Exports stood at USD 2.5 billion, down 11.7% YoY but 3.6% higher month-on-month (MoM), while imports surged 14% YoY to USD 5.8 billion. Sector-wise data showed encouraging activity: cement dispatches climbed 7.05% YoY to 4.25 million tons in September, pushing 1QFY26 volumes up 16.3% YoY to 12.16 million tons. Urea sales rose 17% YoY to 429,000 tons, though DAP sales dropped 47% YoY to 71,000 tons. Petroleum sales were up 8% YoY in September and 6% cumulatively in 1QFY26.

Banks led the index gains with 4,313 points, followed by Fertilizer (+1,204 points), Oil Marketing Companies (OMCs) (+303 points), Exploration & Production (E&Ps) (+298 points), and Technology (+269 points). Negative contributions came from Textiles (-102 points), Cement (-57 points), Fast-Moving Consumer Goods (FMCGs) (-55 points), Auto Parts (-25 points), and Miscellaneous (-21 points). On the scrip side, UBL (+949 points), FFC (+807 points), MEBL (+722 points), HBL (+584 points), and BAHL (+487 points) were top performers, while PPL (-144 points), DGKC (-112 points), MTL (-107 points), OGDC (-57 points), and PIOC (-49 points) trimmed gains.

Ali Najib, Deputy Head of Trading at Arif Habib Limited, said PSX’s advance underscored investor confidence. “Buying interest remained concentrated in fertilizer, banks, power, tech, and insurance,” he told Wealth Pakistan, citing volumes of 1,571 million shares and traded value of PKR 78.6 billion as evidence of strong flows. AKD Securities Limited added that momentum should continue, supported by the IMF’s second review, improved credit ratings, and prospects of foreign investment flows.

It noted the market’s attractive valuations, with the KSE-100 trading at 8.8x earnings and offering a 6.7% dividend yield. With the index brushing against the symbolic 170k level, analysts expect sentiment to remain positive, though profit-taking and macroeconomic cues will guide direction.

Credit: INP-WealthPk