Moaaz Manzoor

The Pakistan Stock Exchange (PSX) navigated a mixed week as investors balanced profit-taking with selective buying. The benchmark KSE-100 index settled at 148,618, down 875 points or 0.6% week-on-week (WoW), after touching a high of 150,080 and a low of 147,210. Despite the marginal decline, sectoral movements and healthy volumes reflected underlying market resilience in the previous week.

Trading activity showed mixed momentum. The average trading volumes increased 14% WoW to 899 million shares, while the average trading value declined 23% to USD 123 million. Monthly, the final trading session ended positively, with the index gaining 1,274 points (+0.86%) as the cement sector led performance. DGKC, LUCK, FCCL, and MLCF collectively contributed 508 points, while DGKC, FCCL, FLYNG, and DCL hit their upper circuits.

Sector-wise, positive contributions came from Cement (+586 points), Power (+88), Autos (+65), Cable & Electrical Goods (+64), and Engineering (+54). Negative contributions were led by Banks (-1,093 points), Pharmaceuticals (-149), Fertilizers (-139), Technology (-129), and Investment Banks (-101).

Scrip-wise, major negative contributors were BAHL (-456), MEBL (-170), HBL (-163), ENGRO (-107), and FABL (-99). Positive contributors included LUCK (+153), DGKC (+127), FCCL (+119), MLCF (+117), and SAZEW (+112).

Financial indicators during the week also influenced sentiment. Pakistan’s foreign exchange reserves rose to USD 19.6 billion (+USD 47 million WoW), with SBP reserves at USD 14.3 billion (+USD 18 million WoW). Import cover remained steady at 2.3 months.

The PKR appreciated marginally by 0.05% WoW, closing at 281.77 against the USD. Auto financing increased 25.3% YoY in July to PKR 286 billion, compared to PKR 228 billion in July 2023, and also recorded a 3.3% MoM increase.

The government’s decision to clear over PKR 100 billion in dues to Chinese power plants reduced outstanding CPEC obligations by nearly one-fourth, leaving just over PKR 300 billion. Additionally, the National Electric Vehicle Policy (NEV) 2025–2030 was unveiled during the week to address environmental challenges.

Commenting on the week’s performance, Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said, “And the day goes to the cement sector!” after cement counters drove the final session’s rally.

Speaking with Wealth Pakistan, Muhammad Waqas Ghani, Head of Equity Research at JS Global Capital, stated that the index’s rise was supported by stable macroeconomic conditions, IMF-backed reforms, strong earnings, and positive U.S. signals. He noted that despite foreign selling, local investors drove the rally, with cement stocks such as MLCF, DGKC, FCCL, and CHCC gaining 22–26% in August.

Credit: INP-WealthPk