Moaaz Manzoor

The Pakistan Stock Exchange (PSX) ended the previous week on a cautious note as the KSE-100 Index fell by 5,892 points, or 3.49% week-on-week (WoW), settling at 163,098. The benchmark opened at 169,179, touched a weekly high of 169,326 and a low of 162,411 before stabilizing slightly above the 163,000 level, reflecting persistent profit-taking across major sectors.

Average trading volumes declined 8.5% WoW to 1.35 billion shares, while the average traded value dropped 24% to USD 195 million, according to data compiled by Arif Habib Limited (AHL). Sector-wise, the biggest negative contributions came from Banks (-1,722 points), Exploration & Production (-1,081 points), Cement (-866 points), Investment Banks (-548 points), and Power (-482 points). Mild support came from Technology (+179 points) and Insurance (+42 points).

On a scrip-wise basis, the major laggards included United Bank Limited (UBL) (-820 points), Engro Corporation (ENGRO) (-539 points), Hub Power Company (HUBC) (-477 points), Lucky Cement (LUCK) (-380 points), and Mari Energies (MARI) (-375 points). Meanwhile, Pakistan Telecommunication Company Limited (PTC) (+160 points) and Systems Limited (SYS) (+69 points) stood out as notable gainers.

According to Topline Securities, investor sentiment was weighed down by concerns over the IMF’s inquiry into an $11 billion trade data gap, although a subsequent clarification by the State Bank of Pakistan helped calm markets. Selling pressure from the insurance sector, which recorded net sales of USD 25 million, and heightened regional tensions following the Kabul blast, further dampened confidence.

Despite the correction, underlying macroeconomic indicators remained largely stable. GDP growth for FY25 was revised upward to 3.04% from 2.68%, driven by substantial industrial expansion of 19.95% in Q4. Workers’ remittances rose 11% year-on-year (YoY) to USD 3.18 billion in September 2025, while cumulative inflows for 1QFY26 increased 8% YoY to USD 9.6 billion. The government’s total debt eased 1.0% month-on-month (MoM) to PKR 77.5 trillion, and foreign exchange reserves edged up USD 13.7 million to USD 19.81 billion. The Pakistani Rupee appreciated slightly by 0.03% WoW, closing at 281.17 per USD.

Commenting on the market trend, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said, “Bearish momentum continues; the PSX closed the last session on a weak note, losing 1,433 points or 0.87%. However, market participation remained strong with 1.39 billion shares traded, led by K-Electric.” On the corporate front, two key Memoranda of Understanding (MoUs) were signed concerning K-Electric’s ownership transition and future energy collaborations, signaling potential long-term improvements in the power sector.

Looking ahead, analysts expect market sentiment to hinge on upcoming corporate earnings and developments regarding the IMF. The KSE-100 Index currently trades at a forward price-to-earnings (P/E) ratio of 8.21x for 2026, below its 15-year average of 8.59x. It also offers an attractive dividend yield of 6.3%, indicating that valuations remain compelling despite short-term volatility.

Credit: INP-WealthPk