Pakistan Stock Exchange (PSX) traded largely sideways during the outgoing week, with the benchmark KSE-100 index closing at 154,440, up 163 points, or 0.1% week-on-week (WoW). Investors remained cautious amid profit-taking, the prevailing flood situation and the upcoming monetary policy announcement.
On a day-on-day basis, the PSX extended its unstoppable rally on Monday, smashing through the 156,000 barrier to close at 156,087, up 1,810 points (+1.17%).
The bourse witnessed a tug of war on Tuesday as bears and bulls locked horns in a fierce battle for momentum. In the end, the bulls claimed victory, pushing the KSE-100 to 156,564 at close, up 476 points (+0.31%).
On Wednesday, the market experienced another sideways ride, with the index swinging in both directions before settling at yet another record close at 157,021 (+457 points; +0.29%).
The PSX finally hit the pause button on Thursday after an electrifying rally of over 10,000 points (+7%) since the August 29 lows. The market swung both ways before settling at 156,141, down 880 points (-0.56%).
The stock exchange closed the week on a sombre note on Friday, where the KSE-100 slid 1,702 points (-1.09%) to settle at 154,440.
Arif Habib Limited (AHL) mentioned that the KSE-100 index traded mostly sideways during the week, closing at 154,440 with a gain of 163 points (0.1% WoW), amid profit-taking and uncertainty stemming from the current flood situation.
Moreover, Pakistan is set to launch its first-ever Panda Bond worth $250 million, marking a significant step towards diversifying the country's funding sources. Remittances by overseas Pakistanis increased 7% year-on-year (YoY) to $3.14 billion during Aug'25 compared to $2.9 billion during Aug'24. On a month-on-month (MoM) basis, remittances decreased 2%, AHL said.
In Aug'25, the automotive industry saw an increase in sales to 14,050 units, a 27% rise MoM and a 62% growth YoY. Cumulatively, in 2MFY26, the auto sales increased 45% YoY to 25.1k units.
Additionally, the central government debt swelled to Rs77.9 trillion (+2.4% MoM or Rs1,843 billion) as of Jun'25 compared with Rs76 trillion in May'25. Furthermore, from Sept'20 to Aug'25, total net investments made through the Roshan Digital Account (RDA) stood at $1,525 million.
The State Bank's reserves improved to $14.3 billion, up $34 million WoW. The Pakistani rupee remained steady, closing at 281.56 against the US dollar.
AHL added that the sectors that contributed positively were power (184 points), investment banks (179 points), exploration & production (154 points), textile (137 points) and chemical (105 points). Meanwhile, sector-wise negative contributions came from banks (458 points), cement (243 points), FMCG (100 points), glass (44 points) and insurance (34 points).
Script-wise positive contributors were Engro Holdings (200 points), Meezan Bank (188 points), Hubco (188 points), Mari Petroleum (178 points) and NBP (150 points). Among individual stocks, the negative contributors included UBL (574 points), OGDC (118 points), Maple Leaf Cement (111 points), Fauji Cement (98 points) and MCB Bank (69 points).
Average volumes arrived at 1,092 million shares (up 2.2% WoW), while average traded value settled at $185 million (up 4%), AHL concluded.
Syed Danyal Hussain of JS Global noted that the KSE-100 index depicted mixed trends during the outgoing week, while posting an all-time intra-day high of 157,817. It ended the week flattish at 154,440 (+0.1% WoW), mainly caused by late selling pressure.
He pointed out that the week began on a positive note as Pakistan signed memoranda of understanding (MoUs) worth $500 million with US firms in the mineral sector and $4 billion with Chinese firms in the agriculture sector. Additionally, the ADB and AIIB agreed to provide $285 million in guarantees, enabling Pakistan to raise $250 million by offering its first-ever Panda Bond.
In other news, the JS analyst said, an International Monetary Fund (IMF) delegation was scheduled to visit Pakistan on September 25 for the second review of the ongoing $7 billion Extended Fund Facility. Additionally, the government is in the process of finalising an industrial policy with different considerations underway, including the removal of cross-subsidies and the abolition of peak power tariffs for industrial customers, to further improve export competitiveness, he added.
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