PSX benchmark index closes at an all-time high of 172,401

Pakistan Stock Exchange (PSX) experienced volatility throughout the week, driven by portfolio adjustments and realignments at year-end. However, the bullish momentum prevailed on the continuation of investor optimism amid recent 50bps rate cut announced by the State Bank of Pakistan (SBP). Benchmark index gained 996 points to close at an all-time high of 172,401 points, reflecting an increase of 0.6%WoW.

Market participation weakened by 3.5%WoW due to average daily traded volume falling to 1.1 billion shares, as compared to 1.2 billion shares in the prior week.

The Government of Pakistan successfully executed the privatization of the national carrier, PIA, with a consortium led by the Arif Habib Group emerging as the winning bidder for the acquisition of a 75% stake.

T-bills yields declined on one-month, 3-months, 6-months and 12-months paper, on the first auction after surprise 50bps cut in policy rate.

Foreign exchange reserves held by SBP increased by US$16 million, to US$15.9 billion as of December 19, 2025.

Other major news flow during the week included: 1) Pakistan eyes January Panda Bond debut, 2) Pakistan receives US$700 million from the World Bank for tax reforms, 3) ADB reviews progress on ML-I rail upgradation, and 4) Pakistan, Korea look to boost chemical trade.

Property, Technology, Modaraba, Paper & Board, and Fertilizer were amongst the top performing sectors, while laggards included: Inv. Banks, Woollen, Textile Weaving, Vanaspati, and Leasing

Major buying was recorded by Mutual Funds with a net buy of US$4.4 million, while Insurance Companies emerged as major sellers with net sell of US$5.0 million.

Top performing scrips of the week were: JVDC, PTC, KOHC, BOP, and MEHT, while laggards included: YOUW, RMPL, UNITY, SSGC, and GADT.

AKD Securities foresees the momentum in the benchmark index to continue given successful third tranche disbursement under the EFF & RSF, monetary easing environment, minimal flood impact and improved credit ratings by global agencies amid falling fixed income yields.

Investor sentiment is 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, with the KSE-100 trading at a multiple of 8.0x while offering a dividend yield of 6.5%.

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

Pakistan Stock Exchange posts nominal gains

Pakistan Stock Exchange witnessed mixed momentum throughout the week ended on August 09, 2024 to close at 78,570 level with a nominal 0.4%WoW gain.

According to a report by AKD Securities, the week began on a turbulent note, primarily due to concerns about global markets following Japan's interest rate hike. However, a rebound in the E&P sector, spurred by a surprising payout from MARI, revitalizing market sentiment in the last two sessions.

Investors’ confidence was further strengthened by debt rollover commitments during the week, aligning with IMF prerequisites ahead of the Executive Board meeting expected later this month.

Additionally, T-Bill yields dropped in the latest auction on Wednesday, signaling investor anticipation of rapid rate cuts in upcoming Monetary Policy Committee (MPC) meetings. This decline in T-Bill yields consequently led to KIBOR rates hitting 18-month low.

On the macroeconomic front, remittances for July 2024 were reported at US$3.0 billion, up 45%YoY, cementing a positive outlook for the current account balance for the ongoing year.

The energy sector remained a focal point of public discourse amid rising power prices, prompting the government to establish a task force on energy and announce plans to retire/ gradually phase out 15 IPPs.

The ECC directed the relevant ministry to formulate a fertilizer policy to address concerns over production, pricing, and the provision of gas, which might result in unify gas prices across the industry.

Despite initial volatility in market, participation surged by 38%WoW, with the average daily traded volume rising to 493 million shares, from 358 million shares a week ago.

On the currency front, PKR largely remained stable against the greenback, closing the week at PKR278.55 to a US$.

Other major news flows during the week included: 1) Cement sales declined by 7% due to slow down of economic activity, 2) SBP forex reserves rose by US$51 million to US$9.15 billion, 3) SIFC was hopeful of foreign investments once IMF deal was done, and 4) GoP hiked GST on tractors to 14%.

Woollen, Textile weaving, and Textile spinning were amongst the top performing sectors, while, Vanaspati & allied industries, Property, and Fertilizer were amongst the worst performers.

Major net selling was recorded by Mutual Funds with a net sell of US$6.0 million. Individuals absorbed most of the selling with a net buy of US$5.5 million.

Top performing scrips of the week were: YOUW, BNWM, MARI, SNGP and APL, while top laggards included: PIBTL, AKBL, BAHL, FFC and ATRL

Looking ahead, market is expected to continue positive momentum as global market concerns settle and macroeconomic indicators remain favorable. The anticipated IMF Executive Board approval during the month is likely to support the momentum.

Sectors benefiting from monetary easing and structural reforms would remain in the limelight. However, modest economic recovery would keep the upside in check for the cyclicals.