PSX benchmark index closes almost flat

Pakistan Stock Exchange (PSX) gained 408 points or 0.24%WoW to closing at 167,086 points on Friday, December 05, 2025. The appointment of Field Marshal Asim Munir as Chief of Defense Forces and the extension in maturity of Saudi Arabia’s US$3.0 billion deposit helped settle mid-week volatility.

Market participation dropped by 22%WoW due to volatility, with average daily traded volume declining to 863 million shares from 1.1 billion shares in the prior week.

On the external front, trade deficit widened by 33%YoY to US$2.9 billion in November 2025, driven by 5%YoY increase in imports and 15%YoY decline in exports.

Headline inflation remained in line with expectations at 6.1%YoY for November 2025.

Cement and E&P contributed the most to index’s gains, while cement sector rallied on the back of 2% YoY growth in local dispatches and LUCK’s foreign expansion announcement, while E&P sector advanced as LNG diversion plan progressed and the auction of offshore blocks attracting Turkish investment.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$14 million to US$14.6 billion as of November 28, 2025.

Other major news flow during the week included: 1) Petroleum product sales drop 10% YoY in November, 2) FBR faces PKR143 billion shortfall in achieving November 2025 target, 3) Refinery upliftment jumps 40%YoY in November, 4) Wheat sowing likely to beat target in Punjab, and 5) Business confidence rises to 22%, as per OICCI.

Inv. Banks/ Cos, Refinery, and Cement were amongst the top performing sectors while, Automobile parts & assembler, Textile spinning, and Fertilizer were among the laggards.

Major buying was recorded by Individuals and Mutual Funds with a net buy of US$17.8 million and US$12.0 million, respectively. On the other hand, Insurance and Foreigners were major sellers with net sell of US$32.4 million and US$9.7 million, respectively.

Top performing scrips of the week were: BNWM, PTC, SRVI, PIOC, and TRG, while laggards included: THALL, AICL, HUMNL, HGFA, and FHAM.

According to AKD Securities the momentum in the benchmark index of PSX is likely 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’ sentiment 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 also 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, ILP, and INDU.

Pakistan Stock Exchange index up 2.5%WoW

The week ended on July 27, 2023 continued its bullish run at Pakistan Stock Exchange (PSX). The benchmark index started the week at 45,920.73 points, remained on upward trajectory and closed at 47,076.99 points, gaining 1,156.26 points or 2.5%WoW. Investors’ sentiments remained positive after the approval of the IMF Standby Agreement for US$3 billion and expectations that the general elections would be held in time.

Average daily traded volume was reported 125.64 million shares as compared to 325.12 million shares a week ago, down by 61.4%.

The PKR parity appreciated to PKR286.45 to a US$.

Results announcements for the period ended June 30, 2023 continued during the week. Several companies posted results below past performances mainly owing to the lingering global and local economic headwinds resulting in record high interest rates, deteriorating exchange rate, imposition of super tax, amongst other reasons.

Monetary policy announcement is scheduled for July 31, with market consensus remaining at a 100bps hike.

In other positive news, 5 state owned enterprises (SOEs) have signed  MoUs to finance their 30% portion in the development of a Greenfield refinery project with Saudi Aramco, and establishment of a Sovereign Wealth Fund worth PKR2.3 trillion by including 7 SOEs (where UAE has shown interest in acquiring shares) to fund capital investments. Abu Dhabi Investment Authority has provided technical assistance to finalize the law.

Other news for the week were: 1) global crude oil remained higher owing to production cuts amidst sluggish demand from China, 2) Pakistan scheduled to repay US$2.44 billion during July; 3) an electricity tariff hike for PKR7.50 per unit announced, barring consumers using up to 200 units and partial subsidy for consumers up to 300 units; 4) prolonged wet spell threatens cotton crop output; 5) POL products worth US$1.182 billion imported on deferred payment basis from Saudi Arabia; 6) Petroleum dealers margins increase by PKR1.64 per liter; 7) US FED announced rate interest rate hike by 0.25bps.

Flow-wise, major selling was recorded by Mutual Funds with a net sell of US$5.98 million. Other Organization absorbed most of the selling with a net buy of US$5.22 million.

Top performing scrips during the week were: HGFA, AICL, HBL, NBP, and SHEL, while top laggards included: SML, BNWM, DAWH, MUGHAL, and ENGRO.

In brokers’ opinion, the market shall maintain it’s positive uptick owing to news relating to Chinese loans rollovers, fresh funding from GCC and other bilateral allies, chances of political stability post general elections towards the end of the year and a possible re-entry into a bigger IMF program to address any lingering default concerns.

However, it is imperative to see which direction the policy rate goes in the July 31, announcement, which will further determine market sentiments.

Brokers reiterate their stance to follow a cautious approach while taking new positions and we continue to advocate dollar-denominated revenue stream scrips (Technology and E&P sector) to hedge against currency risk or high dividend yielding scrips.