Moaaz Manzoor

The Pakistan Stock Exchange (PSX) closed the week on a strong footing, with the benchmark KSE-100 Index gaining 2,779 points, or 1.66% week-on-week, to settle at 169,865. During the week, the index touched a high of 170,698 points and a low of 167,386 points, indicating consolidation following the recent rally. Average daily traded volume surged 49.5% week-on-week to around 1.3 billion shares, compared with 863 million shares in the preceding week, reflecting heightened investor participation.

Sector-wise performance remained mixed. According to AKD Securities, Textile Spinning, Engineering, Synthetic & Rayon, Textile Composite, and Glass & Ceramics emerged as the top-performing sectors, posting weekly gains of 7.3%, 6.8%, 5.8%, 5.4%, and 5.3%, respectively. In contrast, Leather & Tanneries, Jute, Leasing Companies, Refinery, and Vanaspati & Allied Industries underperformed, declining by 9.7%, 7.0%, 3.3%, 1.4%, and 0.8%, respectively.

On a company-wise basis, Nishat Mills (NML) topped the gainers’ list with a 23.5% rise, followed by KAPCO (19.1%), MLCF (17.3%), ISL (16.4%), and LOTCHEM (13.2%). On the downside, SRVI fell 12.9%, HUMNL declined 6.6%, TRG slipped 4.9%, HINOON dropped 4.1%, and SAZEW eased 3.2% over the week. Flow-wise, mutual funds emerged as the largest buyers, recording net inflows of USD 22.7 million, while insurance companies were the biggest sellers with net outflows of USD 22.6 million, reflecting portfolio rebalancing at elevated index levels.

Market sentiment was supported by key macroeconomic developments, including the IMF Executive Board’s approval of a USD 1.2 billion disbursement under the Extended Fund Facility (EFF) following the second review, along with the first tranche under the Resilience and Sustainability Facility (RSF).

Sentiment also drew support from the settlement of Pakistan Energy Sukuk (Phase I), aimed at easing circular debt in the power sector. On the external front, worker remittances rose 9% year-on-year to USD 3.19 billion in November 2025, compared with USD 2.92 billion in the same month last year, although they declined 7% month-on-month. Cumulatively, remittances during the first five months of FY26 increased 9% year-on-year to USD 16.4 billion.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) edged up by USD 12 million during the week to USD 14.6 billion, while commercial bank reserves stood at USD 5.02 billion. Commenting on Friday’s session, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the PSX made its third consecutive attempt to close above the 170,000 mark, briefly crossing the level intraday before retreating as profit-taking emerged ahead of the weekend.

He noted that FFC, MCB, SYS, PPL, and HUBC together added 784 points, while SRVI, ENGROH, DHPL, JVDC, and DGKC collectively shaved off 130 points. Looking ahead, analysts expect consolidation around the 170,000 level to reach a decisive phase. A sustained breakout could open the way for fresh highs, while a loss of momentum may see the 167,000–168,000 range act as a key support zone in the near term.

Credit: INP-WealthPk