PSX benchmark index up 2.0%WoW

Pakistan Stock Exchange (PSX) was supported by strong corporate earnings and Moody’s upgrade of deposit ratings for Pakistani banks, while demonstrating weakness later on in the week due to political noise. The benchmark index touched an all-time high of 151,262 points, but closed the week at 149,493 points, up 2.0%WoW.

Market participation rose 31%WoW to 790 million shares, from 606 million shares a week ago.

On the macroeconomic front, Pakistan posted a current account deficit of US$254 million as compared to a deficit of US$348 million during the same period last year.

IT exports for July 2025 increased by 24%YoY to US$354 million, from US$286 million during the same period last year.

LSM index witnessed an increase of 4.1%YoY in June 2025, resulting in FY25 declining by 0.7%YoY.

As regards sectoral developments, urea fertilizer offtakes moderated by 1%YoY during July 2025, mainly due to weak farm economics and higher phosphate prices.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$13 million to US$14.3 billion as of August 15, 2025. As a result, PKR appreciated for the 5th consecutive week against the greenback.

Other major news inflows during the week included: 1) ADB to promises to provide US$410 million package for Reko Diq copper and gold mines, 2) Chinese Foreign Minister, Wang Yi arrives in Islamabad on three-day visit, 3) July 2025 FDI rises 7%YoY to US$208 million, 4) Tehran agrees raising trade with Pakistan to US$10 billion, and 5) GoP slashes high-speed diesel while leaving petrol price unchanged.

REITs, Leather & Tanneries, and Transport were amongst the top performing sectors, while Vanaspati & allied industries, Close-end Mutual funds, and Chemical sectors among the laggards.

Major selling was recorded by Foreigners and Banks/DFIs with a net sell of US$21.6 million. Mutual Funds and Companies absorbed most of the selling with a net buy of US$24.7 million.

Top performing scrips of the week were: KOHC, SEARL, BAHL, THALL, and MUGHAL, while the laggards included: PGLC, PKGP, HUMNL, YOUW, and NESTLE.

According to Pakistan’s leading brokerage house, 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 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, FCCL, INDU, and SYS.

PSX experiences slight pullback

Pakistan Stock Exchange witnessed a slight pullback during the week, retreating after reaching its highest-ever closing a week ago. The benchmark index closed at 117,806 points, down by 635 points or 0.54%WoW as compared to last week's closing at 118,442 points.

Average daily trading volume also dropped by 38%WoW, to 317 million shares, as compared to 508 million shares traded a week ago.

The profit taking was driven by substantial selling by Insurance companies, alongside month-end rollovers, which added to investors’ unease before Eid holidays.

Several positive developments emerged during the week, as IMF confirmed reaching the Staff Level Agreement (SLA) with the authorities in the first review of EFF, supplemented with a 28-month arrangement of US$1.3 billion under Resilience and Sustainability Facility (RSF), pending approval of the IMF’s Executive Board.

GDP growth for 2QFY25 was recorded at 1.7%YoY, with Agriculture recovering by 1.1%YoY amidst a 5.4%YoY decline in crops growth.

PKR largely remained stable against the greenback throughout the week.

Other major news flow during the week included: 1) IMF team due in May to finalize FY26 budget, 2) GoP to slash power tariffs soon, 3) Turkiye, Denmark to support climate fight, 4) Net metering contract term limited to 5 years, and 5) Pakistan receives US$9.77 billion via RDA as of February 2025.

Tobacco, Glass & Ceramics, and Vanaspati & Allied Industries were amongst the top performing sectors, while Leather & Tanneries, Paper & Board, and Technology & Communication were amongst the laggards.

Major selling was recorded by Insurance Companies with a net sell of US$8.8 million. Individuals and Other Organizations absorbed most of the selling with a net buy of US$9.3 million.

Top performers during the week were: PAKT, UBL, ATLH, NPL, and ABOT, while laggards included: PKGP, SRVI, KTML, CHCC, and NML.

According to AKD Securities the arket is expected to remain positive in the coming weeks, with the recent announcement of a staff-level agreement serving as a key trigger for momentum.

The benchmark index is anticipated to sustain its upward trajectory, 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 pick of the brokerage house includes, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, LUCK, FCCL, INDU, ILP and SYS.