PSX benchmark index declines 0.59%WoW

Pakistan Stock Exchange (PSX) remained volatile during the week due to recent flooding in KPK and Punjab, coupled with heightened political noise. As a result, the benchmark index lost 870 points, down 0.59%WoW, to close at 148,617 points. Nonetheless, a partial recovery was seen in Friday’s session, with the index rebounding by 1,274 points on the back of robust corporate earnings, particularly from the cement sector.

Market participation improved, with average daily traded volume increasing by 13.7%WoW to 899 million shares, up from 790 million shares a week ago.

Net foreign exchange interventions by State Bank of Pakistan (SBP) was reported at US$7.2 billion during 11MFY25.

SBP’s profit during FY25 fell by 27%YoY to PKR2.5 trillion given decline in interest rates. However, dividend payout to federal government surged to PKR2.7 trillion during the period.

SBP’s held gold reserves increased to US$6.8 billion, up 41%YoY in FY25.

SBP held foreign exchange reserves increased by US$18 million, closing the week at US$14.3 billion as of August 22, 2025.

PKR appreciated by 0.05%WoW against the greenback during the week, closing the week at PKR281.77/US$.

Other major news flow during the week included: 1) Pakistan gets 19% tariff after US drives a hard bargain, 2) SBP enhances housing finance limit for microfinance borrowers to PKR5 million, 3) ExxonMobil likely to come back for offshore venture, 4) Pakistan set to initiate dialogue with Qatar on LNG supplies, and 5) Budget deficit drops to 5.4% in FY25 from 6.8% for the same period last year.

Jute, Property, Cement, Cable & Electrical Goods, and Glass & Ceramics were amongst the top performers, while Woollen, Leather & Tanneries, Textile Spinning, Insurance, and Pharmaceuticals were amongst the laggards.

Major selling was recorded by Foreigners and Banks/DFIs with a net sell of US$23.4 million. Mutual Funds and Companies absorbed most of the selling with a net buy of US$27.8 million.

Top performing scrips of the week were: PIBTL , SAZEW, DGKC, UPFL, and PAEL, while laggards included: AGP, BAHL, FABL, SRVI, and AIRLINK.

According to AKD Securities, PSX is expected to remain positive in the coming weeks, with further developments over circular debt expected to drive the market along with upcoming corporate results remaining in the limelight.

The benchmark is anticipated to sustain its upward trajectory, with a target of 165,215 points by end December 2025, 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.

The top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, INDU, and SYS.