KARACHI: The Pakistan Stock Exchange (PSX) ended the week on a strong upward trajectory, with the benchmark KSE-100 Index closing at 166,677.70, gaining 4,574.78 points, or 2.8 percent week-on-week, compared with the previous close of 162,102.92.
The rally remained broad-based, supported by gains in major sectors including fertilizer, banks, technology & communication, cement, and exploration & production, reflecting improved market sentiment.
Fertilizer stocks led the performance with a 4.9 percent weekly increase, followed by Banks at 2.9 percent, Technology & Communication at 2.8 percent, cement at 2.6 percent, and E&Ps at 2.5 percent. OGMCs and textiles also recorded gains, while chemicals, pharmaceuticals, engineering, and refineries ended in negative territory, with the refinery sector posting the deepest decline of 5.3 percent for the week.
Market capitalization increased correspondingly. The PSX’s total market cap rose 1.9 percent to Rs18.866 trillion, up from Rs18.512 trillion a week earlier. In US dollar terms, the market cap increased to US$67.26 billion from USD65.97 billion.
Average daily traded volumes on the ready board fell sharply by 46.9 percent, declining to 561.68 million shares from 1.056 billion a week earlier. Readyboard value also dropped 21.2 percent to Rs29.86 billion.
During the week, the government raised over Rs1 trillion through auctions of Treasury Bills, Pakistan Investment Bonds, and Government Ijara Sukuk. In the latest T-bill auction, the government mobilized Rs749 billion against a target of Rs650 billion, with yields easing by 4–10 basis points across various tenors.
On the macroeconomic front, the International Monetary Fund highlighted weak internal audits and inadequate parliamentary oversight as major risks to Pakistan’s public financial management framework. Meanwhile, in the energy sector, OGRA recommended further increases in gas tariffs for SSGC and SNGP in its recent tariff determination.
Meanwhile, foreign exchange reserves held by the State Bank of Pakistan remained stable at USD14.6 billion.
In corporate developments, Barrick Gold’s interim CEO, Mark Hill, reaffirmed the company’s commitment to the Reko Diq copper-gold project, stating that ongoing corporate restructuring would not affect the company’s plans and that the project remains a priority asset.
Sector-wise volume contribution showed technology & communication leading with 17 percent of total market activity, followed by banks at 11 percent, investment banks at 10 percent, engineering at 9 percent, and power at 7 percent. The remaining 47 percent of volumes came from other sectors.
Among index constituents, SSGC emerged as the top gainer, surging 18.2 percent to close at Rs39.47, followed by SRVI, which gained 14.2 percent, and PIOC, up 10.1 percent. HUMNL, FATIMA, LUCK, and MEBL also posted strong weekly gains. In contrast, PKGP recorded the largest decline of 6.7 percent, while BWCL dropped 5.8 percent. YOUW, CNERGY, ATRL, INIL, and PSEL also closed the week lower.
Adding to the week’s economic context, AKD Research projected that Pakistan’s annual headline inflation for November 2025 is expected to remain sticky at 6.2 percent year-on-year, driven by moderate increases across heavyweight indices.
Analysts expect the upward momentum in the KSE-100 Index to persist, supported by the IMF Executive Board’s approval of Pakistan’s second review, limited flood-related disruptions, and improved credit ratings from global agencies amid declining fixed-income yields.
Market sentiment is projected to strengthen further on the back of potential foreign portfolio and direct investment inflows, particularly as Pakistan’s relations with the United States and Saudi Arabia show signs of improvement. The outlook is reinforced by the absence of compelling alternative investment avenues and the relatively attractive valuations of domestic equities, with the KSE-100 trading at 7.7 times earnings and offering a dividend yield of 6.7 percent.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.