KARACHI: The Pakistan Stock Exchange (PSX) ended the last week on a subdued note after a volatile trading period dominated by geopolitical concerns, profit-taking, and corporate earnings announcements. The benchmark KSE-100 Index declined by 1.03 percent week-on-week, closing at 161,631.73 points, compared with 163,304.13 points recorded in the previous week.
During the week ended October 31, 2025, the BRIndex100 opened at 17,137.29 points and closed lower at 16,973.04 points, registering a decline of 164.25 points or 0.96 percent, with a total turnover of 3.91 billion shares. Similarly, the BRIndex30 began the week at 54,594.45 points and settled at 54,018.06 points, down by 576.39 points or 1.06 percent, with a cumulative trading volume of 2.59 billion shares.
According to market overviews, trading throughout the week was largely influenced by developments on Pakistan’s western border and monetary policy expectations. The index initially came under pressure amid heightened tensions with Afghanistan, as renewed cross-border hostilities dampened sentiment. However, the tone improved sharply on Friday following news that both Pakistan and the Afghan Taliban regime had agreed to maintain a ceasefire under certain conditions after high-level negotiations in Istanbul — a development later confirmed by Turkiye’s foreign ministry. The announcement helped the market recover nearly 4,900 points in the final session, limiting the week’s overall decline.
Average daily traded volumes (ADTV) on the ready board contracted by 14.7 percent week-on-week to 1,564 million shares, compared to 1,853 million shares in the preceding week, reflecting cautious investor participation. Market capitalization decreased by Rs252.94 billion, or 1.3 percent, closing at Rs18.56 trillion (US$66.08 billion) from Rs18.81 trillion (US$66.95 billion) recorded last week.
Analysts at AKD Securities noted that investors adopted a risk-averse stance during most of the week, awaiting clarity on macroeconomic indicators and external financing. The key highlight was the State Bank of Pakistan’s decision to maintain the policy rate at 11 percent, in line with market expectations. The central bank reaffirmed its medium-term inflation target of 5 to 7 percent, emphasizing stability amid moderate price pressures.
On the fiscal side, authorities confirmed that an additional Rs200 billion in tax measures may be introduced if first-half FY26 revenue targets fall short. In the T-bill auction, the SBP raised Rs1.01 trillion, with yields falling 11 basis points on the one-month tenor but increasing 10 basis points on the 12-month paper. Meanwhile, foreign exchange reserves declined marginally by USD156 million week-on-week, standing at USD14.56 billion as of October 24, 2025.
Economic news flow during the week included the formation of eight working groups by Prime Minister Shehbaz Sharif to explore new export avenues; Saudi Arabia’s announcement of a US$1 billion oil financing facility for Pakistan; a Pakistan-Saudi Arabia economic cooperation framework; and an update from the Senate panel that the privatization of Pakistan International Airlines (PIA) is scheduled for completion by December 2025.
JS Global’s review added that the International Monetary Fund (IMF) is expected to hold its board meeting in December 2025 to consider approval of the next US$1.2 billion tranche under the Extended Fund Facility (EFF). The World Bank, meanwhile, revised Pakistan’s GDP growth forecast downward to 3 percent from 3.4 percent, citing persistent inflation and flood-related challenges. On the external front, Saudi Arabia’s rollover of US$5 billion in deposits and continuation of the US$1 billion oil credit line further supported Pakistan’s external account position. The Pakistani rupee appreciated during the week, closing at Rs280.91 per US dollar, its strongest level in six months.
Sector-wise performance remained mixed. Vanaspati, Leasing Companies, and Property emerged as top-performing sectors, gaining 14.8 percent, 7.8 percent, and 3.4 percent respectively week-on-week. In contrast, glass and ceramics, investment banks, and automobile parts declined 14.6 percent, 6.4 percent, and 4.2 percent, respectively. The banking sector gained 0.6 percent, led by renewed buying in blue-chip stocks, while cement, automobile, fertilizer, and technology sectors edged lower between 0.1 and 0.3 percent. Heavier losses were seen in power generation, engineering, textile, and refinery counters, which dropped between 1.5 and 3.9 percent week-on-week.
Among individual gainers, S.S.Oil Mills Limited (SSOM) surged 22.4 percent, National Bank of Pakistan (NBP) advanced 8.2 percent, and Interloop International Ltd. (ILP) rose 8.2 percent, Airlink Communication (AIRLINK) increased 5.1 percent, HBL Growth Fund (HGFA) added 5 percent, Bank Alfalah (BAFL) climbed 4.3 percent, and Atlas Honda (ATLH) improved 4.1 percent.
On the losing side, Tariq Glass Industries Limited (TGL) declined 21 percent, Pakgen Power Limited (PKGP) dropped 15.8 percent, Ghani Glass Global (GHGL) fell 13.8 percent, and Kohinoor Textile Mills (KTML) declined 13 percent.
Institutional flows showed mixed behaviour. Insurance companies were net buyers with US$9.2 million in inflows, while mutual funds were net sellers amounting to US$15 million during the week.
Analysts noted that the strong rebound on the final trading day reflected improving sentiment driven by diplomatic progress and expectations of economic stability. They added that the momentum in the KSE-100 Index could persist if the IMF’s upcoming staff-level review proceeds smoothly, supported by minimal flood impact, improved credit outlook, and stable foreign inflows.
Analysts believe local equities remain attractively valued. Overall, despite a week of heightened volatility and early weakness, the PSX ended with a relatively contained decline, supported by improving geopolitical conditions and renewed investor optimism heading into November.
Copyright Business Recorder, 2025