PSX benchmark index up 2.8%WoW

Pakistan Stock Exchange (PSX) continued its bullish momentum during the week, driven by investor optimism following the announcement that the IMF Executive Board will meet on December 08, 2025, to consider and approve third tranche of US$1.2 billion for Pakistan.

The benchmark index was up 4,575 points during the week, up 2.8%WoW, to close at 166,678 points. However, market participation weakened by 14.2% WoW with average daily traded volume down to 1.1 billion shares, as compared to 1.3 billion shares in the prior week.

Sentiment further boosted after Petroleum Minister Ali Pervaiz Malik announced that Reko Diq is close to achieving financial close with US$3.5 billion in loans secured, sparking a strong rally in the Oil and Gas Exploration sector. The inclusion of FFC in the Shariah-compliant index fueled a surge in the scrip.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$9 million to US$14.6 billion as of Nov 21, 2025.

Other major news flow during the week included, 1) SIFC unveils business-friendly roadmap, 2) PM Shehbaz eyes US$1 billion trade with Bahrain in three years, 3) Chinese group to establish US$1.5 billion industrial park on 300 acres, 4) Food Exhibition 2025 draws strong international interest as B2B deals reach US$615 million, and 5) IMF recognizes Competition Commission of Pakistan’s major turnaround.

Leather & Tanneries, Fertilizer, Commercial Banks, Technology & Communication and Cement were amongst the top performers, while Jute, Modarabas, Refinery, Leasing Companies and Glass & Ceramics were amongst the worst performers.

Flow wise, major buying was recorded by Banks/ DFIs and Mutual Funds with a net buy of US$14.5 million and US$9.5 million during the week, respectively. Foreigners & Individuals were major sellers with net sell of US$12.9 million and US$9.1 million, respectively.

Top performing scrips of the week were: SSGC, SRVI, PIOC, HUMNL and FATIMA, while laggards included: PKGP, BWCL, YOUW, CNERGY and ATRL.

AKD Securities foresee the momentum at PSX to continue given successful IMF Executive Board approval of the IMF’s second review, minimal flood impact and improved credit ratings by global agencies amid falling fixed income yields.

Investors’ sentiments are expected to further improve on the likelihood of foreign portfolio and direct investment flows, driven by improved relations with the US and Saudi Arabia.

This outlook is supported by the lack of alternative investment avenues and the attractive valuation of local equities.

Top picks of AKD Securities include: MEBL, MCB, HBL, OGDC, PPL, PSO, ENGROH, LUCK, DGKC, FCCL, and INDU.