Friday, 15 August 2025

PSX benchmark index up 0.76%WoW

Pakistan Stock Exchange (PSX) remained volatile during the week, opened on positive note driven by strong corporate results and optimism over the upcoming industrial policy, with the government reportedly planning to phase out the super tax over five years. Positive sentiment was further supported by Moody’s upgrading Pakistan’s rating by one notch to Caa1 from Caa2. However, delays in circular debt payments weighed on the E&P and OMC sectors. Overall, the benchmark index gained 1,109 points or 0.76%WoW to close at 146,492 points on Friday, August15, 2025.

Meanwhile, market participation declined 7.2%WoW to 606 million shares from 653 million shares a week ago.

Pakistan officials are in discussions with US over the finer details of a trade deal, along with another visit of Field Martial yielding positive outcome, with US designating BLA as a terrorist organization, a long-standing request by Pakistan.

Passenger car and LCV sales rose 28%YoY, supported by the low base of same period last year amid last year’s plant shutdowns.

Other major news flow during the week included: 1) 3rd IMF tranche of US$1 billion anticipated, 2) Saudi crown prince invites Prime Minister Shehbaz Sharif to investment conference, 3) GoP presses China on Gwadar plan, 4) Debt re-profiling with Chinese IPPs, and 5) OGRA drafts new petroleum rules to resolve supply disputes.

Leasing companies, Textile spinning, and Auto parts were amongst the top performing sectors, while Woollen, Jute, and OMC were among the laggards.

Major selling was recorded by Banks and other organizations with a net sell of US$14 million. Mutual funds absorbed most of the selling with a net buy of US$15.3 million.

Top performing scrips of the week were: AIRLINK, THALL, YOUW, FABL, and FHAM, while the laggards included: UNITY, GADT, PSX, BNWM, and PPL.

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 index is anticipated to remain on 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, FCCL, KOHC, INDU, and SYS.

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