PSX: Average daily traded volume up 49.5%WoW

Pakistan Stock Exchange (PSX) continued its bullish momentum during the week, driven by investor optimism following the announcement of IMF Executive Board approval, for the third tranche of US$1.0 billion under EFF and US$200 million under RSF for Pakistan. Sentiments were further boosted after ECC’s decision to adjust OMC and dealer margins on MS and HSD based on national CPI, capped between 5-10% and Incremental electricity package announced by government for industries and agriculture. The benchmark index gained 2,779 points during the week, up 1.7%WoW, to close at an historic high of 169,865 points.

Market participation strengthened by 49.5%WoW with average daily traded volume up to 1.3 billion shares, from 863 million shares in the prior week.

On the macroeconomic front, Workers’ Remittances for November 2025 were reported at US$3.2 billion, up 9%YoY.

Auto sector sales for November 2025 witnessed a surge of 41% YoY, to 19,635 units.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$12 million to US$14.6 billion as of December 05, 2025. PKR appreciated by 0.04%WoW against the greenback during the week to 280.32 PKR/ US$.

Other major news flow during the week included, 1) ADB okays loan for Karachi-Rohri section, 2) Reko Diq’s US$7 billion deal deepens Pakistan-US economic links, 3) GoP clears PKR659.6 billion power debt, 4) Cabinet approves diversion of 45 LNG cargoes, and 5) Revenue collection grows 27%YoY to PKR12 trillion during FY25.

Textile Spinning, Engineering, Synthetic & Rayon, Textile Composite and Glass & Ceramics were amongst the top performing sectors, while Leather & Tanneries, Jute, Leasing Companies, Refinery and Vanaspati & Allied Industries were amongst the laggards.

Major buying was recorded by Mutual Funds with a net buy of US$22.7 million. Insurance Companies were major sellers with net sell of US$22.6 million.

Top performing scrips of the week were: NML, KAPCO, MLCF, ISL, and LOTCHEM, while laggards included: SRVI, HUMNL, TRG, HINOON, and SAZEW.

AKD Securities foresees the momentum in the benchmark index to continue given successful third tranche disbursement under the EFF & RSF, 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 United States and Saudi Arabia. This outlook is supported by the lack of alternative investment avenues and the attractive valuation of local equities.

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