Moaaz Manzoor

The Pakistan Stock Exchange (PSX) carried forward its bullish momentum in September 2025, with the benchmark KSE-100 Index surging 16,876 points, or 11.4 percent month-on-month, to close at a historic 165,494 points. The index also touched an intraday peak of 166,556 during the final session of the month, underscoring strong investor optimism.

Arif Habib Limited noted that trading activity reached unprecedented levels as the PSX posted its highest-ever average monthly volume of 1,341 million shares. Analysts noted that this record volume showed heightened market participation and improved investor confidence. The average traded value also rose 30 percent month-on-month to USD 194.5 million, with total value for the month at PKR 54.76 billion, ranking as the third-largest monthly average on record.

Sector-wise flows, according to NCCPL, showed foreign investors as major sellers, pulling out USD 22.3 million from banks and USD 7.8 million from exploration and production, along with smaller outflows from fertilizer, power, telecom, and textiles. Cement was the only sector where they turned buyers, adding USD 4.1 million. On the other side, local institutions absorbed much of this selling, with individuals pouring USD 13.7 million into banks, USD 13 million into power, and USD 17.2 million into other sectors. Funds also picked up exploration and production (+USD 23.6 million) and oil marketing companies (+USD 9.6 million).

Banking stocks led the rally, with United Bank Limited (UBL), Habib Bank Limited (HBL), Meezan Bank Limited (MEBL), Bank Alfalah Limited (BAFL), Bank Al Habib Limited (BAHL), National Bank of Pakistan (NBP), and MCB Bank Limited (MCB) collectively adding more than 1,200 points in the last session, driven by strong earnings and dividend expectations. Adding to the momentum, Airlink announced a new production facility at Sundar Green Special Economic Zone, aiming to position Pakistan as a hub for electronics exports.

On the macroeconomic front, the rally drew strength from key positives, including the government’s circular debt resolution of PKR 1,225 billion, the reduction in the current account deficit to USD 245 million, and a rise in foreign exchange reserves to USD 14.38 billion. Analysts observed that these developments reinforced perceptions of stability and helped sustain inflows into equities.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, remarked: “The 165K mark has been breached as PSX ends September on a high note. Sentiment remains buoyant, and institutional flows are intact, setting the stage for an electrifying start to the next quarter.”

Looking ahead, market watchers believe the trajectory will hinge on upcoming monetary policy decisions, corporate earnings, and global oil prices. With September’s rally marking one of the strongest performances in the region, the bulls appear firmly in control as the new quarter begins.

Credit: INP-WealthPk