PSX benchmark index up 2.33%WoW

Pakistan Stock Exchange (PSX) witnessed bullish momentum throughout the week, fueled by investors’ confidence following the historic defense agreement between Saudi Arabia and Pakistan. This optimism was reflected in the PSX achieving its highest-ever traded value of PKR87.4 billion in the last trading session. The benchmark index advanced by 3,598 points, up 2.33%WoW, to close at 158,037 points.

Market participation grew by 43.4%WoW with average daily traded volume rising to 1.8 billion shares, from 1.3 billion shares a week ago, marking second highest average weekly traded volume till date.

State Bank of Pakistan (SBP) left policy rate unchanged at 11% at Monday’s Monetary Policy Committee (MPC) meeting, taking cautious approach given recent floods.

Current Account Deficit (CAD) for August 2025 widened to US$245 million from US$82 million for the same period last year.

IT exports rose to US$337 million, up 13%YoY, but FDI declined by 43%YoY to US$156 million.

Power sector generation for August 2025 was reported at 14,218GWh, up 8%YoY, with the cost of generation declining by 18%YoY, offering some relief on the energy front.

Other major news flow during the week included: 1) Pakistan’s dollar bonds jump to four year high, 2) IMF to be convinced to slash FBR’s envisaged target, 3) Shehbaz-Trump meeting likely on September 25, 2025, 4) Pak, Turkiye to boost ICT cooperation, and 5) Pak-Iran trade reaches US$3 billion.

Property, Technology & Communication, Closed-end Mutual funds, Modarbas and Refinery were amongst the top performing sectors, while Vanaspati & Allied Industries, Leasing Companies, Textile Spinning, Miscellaneous and Engineering were the laggards.

Major selling was recorded by Foreigners with a net sell of US$20.8 million. Mutual Funds and Insurance Companies absorbed most of the selling with a net buy of US$24.0 million.

Top performing scrips of the week were: BOP, TRG, CNERGY, YOUW, and PIBTL, while laggards included: PKGP, ISL, KAPCO, and MEHT.

According to AKD Securities, PSX is expected to remain positive in the coming weeks, with the upcoming IMF review and any developments over circular debt remaining in the limelight.

The benchmark index 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.

Top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, and SYS.