Moaaz Manzoor

The Pakistan Stock Exchange (PSX) closed the previous week nearly flat yet resilient, as the KSE-100 Index settled at 154,440 points, gaining 163 points or 0.1% WoW, amid record highs and steady investor flows.

The index traded largely sideways, oscillating between a high of 157,817 and a low of 154,360, before eventually settling almost flat. Despite bouts of profit-taking and a cautious mood, investor flows remained resilient, while average volumes grew to 1,092 million shares (up 2.2% WoW), and the average traded value rose to USD185 million (up 4% WoW).

Sector-wise performance reflected a mixed picture. Power (+184 points), investment banks (+179 points), exploration and production (+154 points), textiles (+137 points), and chemicals (+105 points) contributed positively. On the other hand, banks (-458 points), cement (-243 points), FMCG (-100 points), glass (-44 points), and insurance (-34 points) weighed down the index.

Scrip-wise, ENGROH (+200 points), MEBL (+188 points), HUBC (+188 points), MARI (+178 points), and NBP (+150 points) provided support, while UBL (-574 points), OGDC (-118 points), MLCF (-111 points), FCCL (-98 points), and MCB (-69 points) dragged sentiment.

According to Arif Habib Limited, on the macroeconomic front, remittances reached USD3.14 billion in August 2025, up 7% YoY, though slightly down 2% MoM. The auto sector also showed strength, with sales climbing 27% MoM and 62% YoY to 14,050 units, while cumulative 2MFY26 sales surged 45% YoY. Meanwhile, central government debt increased to PKR77.9 trillion in June 2025, up 2.4% MoM, while SBP reserves improved modestly to USD14.3 billion, and the rupee remained steady at 281.56 against the dollar.

The week also brought key structural developments. Pakistan announced plans to issue its first-ever Panda Bond worth USD250 million, marking efforts to diversify funding sources. Net investments through Roshan Digital Accounts (RDA) reached USD1.52 billion between September 2020 and August 2025.

Speaking with Wealth Pakistan, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, said the KSE-100 touched 158,000 points during the week but later corrected. “The floods have clearly impacted growth projections. As an agrarian economy, agriculture plays a big role in GDP, and both the IMF and other donors will reassess growth forecasts once the full impact on crops is evident,” he explained.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, observed that the week closed on a cautious note. “The KSE-100 slid 1,701 points (-1.09%) to settle at 154,440. The session opened hopeful, but heavy selling pressure dragged the index below 155,000, with banks, fertilisers, power, cement, and E&Ps taking the biggest hit,” he said.

Looking ahead, analysts expect volatility to persist as investors eye the upcoming monetary policy announcement, where the policy rate is likely to remain unchanged. The market currently trades at a forward PER of 7.8x (2026), below its 15-year average of 8.59x, while offering a healthy dividend yield of 5.8% against the historical average of 6.13%.

Credit: INP-WealthPk