KARACHI: The Pakistan Stock Exchange (PSX) endured a lacklustre week as persistent geopolitical uncertainty and weak macroeconomic indicators kept investor sentiment under pressure.
The benchmark KSE-100 Index declined by 2,038 points or 1.3 percent on a week-on-week basis to settle at 159,592.91 points, marking another week of subdued activity across the board.
Market capitalization fell 1.5 percent week-on-week to Rs18.29 trillion, equivalent to US$64.66 billion. Trading volumes remained muted, with the ready market’s average daily turnover declining 7.2 percent to 887 million shares, while traded value slipped 6.2 percent to Rs36.19 billion, or about US$128.68 million.
The BRIndex100 recorded a total weekly turnover of 3.4 billion shares, translating into a daily average volume of around 680 million shares over the five trading sessions. Likewise, the BRIndex30 witnessed an aggregate turnover of 2.18 billion shares, averaging roughly 436 million shares per day during the week ending November 7, 2025.
According to JS Global Research, investors remained wary as external fragilities combined with domestic fiscal and inflationary concerns continued to weigh on the market. On the macroeconomic front, the consumer price index for October 2025 came in at 6.2 percent, exceeding market expectations. The uptick was mainly driven by flood-related supply chain disruptions and the closure of border crossings with Afghanistan, which restricted trade flows and pushed up food prices. The average inflation rate for the first four months of FY26 stood at 4.73 percent.
Meanwhile, the country’s trade deficit widened 56 percent year-on-year to USS3.2 billion in October 2025, taking the cumulative deficit for the first four months of FY26 to USD12.6 billion. Imports rose to USD6.1 billion, the highest monthly level since March 2022, while exports fell 4 percent on an annual basis. Remittance inflows, however, provided some support, improving 12 percent year-on-year to USD3.4 billion during the month.
In the power sector, circular debt grew by Rs79 billion in the first quarter of FY26, reaching Rs1.69 trillion. On the fiscal front, the Federal Board of Revenue recorded another monthly shortfall of Rs76 billion in October, raising the cumulative deficit for 4MFY26 to Rs274 billion, with total tax collections amounting to Rs3.84 trillion.
The government mobilized Rs793 billion in the latest auction of Pakistan Investment Bonds, with yields on the two-year, three-year, and five-year tenors increasing by 14–15 basis points, while the 15-year tenor eased by nine basis points. The State Bank of Pakistan’s foreign exchange reserves increased slightly by USD31 million week-on-week, reaching USD14.51 billion.
Sectoral performance remained mixed, as select industries managed to outperform despite overall weakness in market sentiment. The refinery sector led the gainers with a 5.8 percent weekly rise, followed by automobiles and power, which edged up 1.6 percent and 0.6 percent, respectively. The chemicals and food sectors also posted minor gains. In contrast, banks, cement, oil marketing companies, textiles, and engineering stocks saw notable declines ranging between 2.4 and 3.6 percent. The exploration and production, pharmaceutical, and technology and communication sectors also ended the week in negative territory.
Among individual performers, PSEL emerged as the top gainer of the week, surging 29 percent to close at Rs1,463.75, followed by DHPL, which advanced 21.9 percent to Rs55.36, and ATRL, which rose 9.7 percent to Rs671.41. Other major gainers included TPLRF1, PKGP, NATF, and MTL, with gains ranging from 5 to 9 percent. On the downside, KTML led the laggards with an 11.8 percent drop to Rs49.25, followed by SNGP down 9.5 percent to Rs118.15, ISL down 8 percent to Rs92.54, and IBFL off 7.6 percent to Rs267.54. MEBL, PGLC, and BAFL also ended lower, losing between 5 and 6 percent.
Market observers noted that despite steady remittance inflows and marginal improvement in reserves, investor sentiment is expected to remain cautious in the near term as fiscal and external account pressures persist. Analysts anticipate that clarity on inflation dynamics, policy direction, and global geopolitical developments will be crucial in determining market direction going forward.
Copyright Business Recorder, 2025
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