PSX experiences slight pullback

Pakistan Stock Exchange witnessed a slight pullback during the week, retreating after reaching its highest-ever closing a week ago. The benchmark index closed at 117,806 points, down by 635 points or 0.54%WoW as compared to last week's closing at 118,442 points.

Average daily trading volume also dropped by 38%WoW, to 317 million shares, as compared to 508 million shares traded a week ago.

The profit taking was driven by substantial selling by Insurance companies, alongside month-end rollovers, which added to investors’ unease before Eid holidays.

Several positive developments emerged during the week, as IMF confirmed reaching the Staff Level Agreement (SLA) with the authorities in the first review of EFF, supplemented with a 28-month arrangement of US$1.3 billion under Resilience and Sustainability Facility (RSF), pending approval of the IMF’s Executive Board.

GDP growth for 2QFY25 was recorded at 1.7%YoY, with Agriculture recovering by 1.1%YoY amidst a 5.4%YoY decline in crops growth.

PKR largely remained stable against the greenback throughout the week.

Other major news flow during the week included: 1) IMF team due in May to finalize FY26 budget, 2) GoP to slash power tariffs soon, 3) Turkiye, Denmark to support climate fight, 4) Net metering contract term limited to 5 years, and 5) Pakistan receives US$9.77 billion via RDA as of February 2025.

Tobacco, Glass & Ceramics, and Vanaspati & Allied Industries were amongst the top performing sectors, while Leather & Tanneries, Paper & Board, and Technology & Communication were amongst the laggards.

Major selling was recorded by Insurance Companies with a net sell of US$8.8 million. Individuals and Other Organizations absorbed most of the selling with a net buy of US$9.3 million.

Top performers during the week were: PAKT, UBL, ATLH, NPL, and ABOT, while laggards included: PKGP, SRVI, KTML, CHCC, and NML.

According to AKD Securities the arket is expected to remain positive in the coming weeks, with the recent announcement of a staff-level agreement serving as a key trigger for momentum.

The benchmark index is anticipated to sustain its upward trajectory, primarily driven by strong earnings in fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

Top pick of the brokerage house includes, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, LUCK, FCCL, INDU, ILP and SYS.