Profit-taking ends five-week rally at PSX

The Pakistan Stock Exchange (PSX) ended the week on a bearish note as the KSE-100 index fell 5,892 points, or 3.49% week-on-week (WoW), to close at 163,098, snapping a five-week winning streak.

The downturn was largely driven by heavy profit-taking across major sectors despite positive macroeconomic indicators, with the National Accounts Committee (NAC) revising FY25 GDP growth to 3.04%, up from the earlier estimate of 2.68%.

On a day-on-day basis, the PSX began the week on a turbulent note as the KSE-100 index slipped to the intra-day low of 165,997 (down 1.77%), breaking through multiple support levels at 169k, 168k, 167k, and 166k amid heavy profit-taking near the psychological 170k mark.

The market extended its correction for a second consecutive session on Tuesday, with the index losing 1,579 points (-0.94%) to close at 166,174. On Wednesday, the PSX witnessed a turbulent session as bears tightened their grip on market momentum, settling at 165,266, down 907 points, or 0.55%.

The bourse extended its losing streak on Thursday, when the KSE-100 shed another 736 points (-0.45%) to close at 164,531. Continuing its bearish momentum, the market closed last session of the week on a negative note at 163,098 by losing 1,433 points, or 0.87%. Since the intra-day high of 169,988 hit on last Friday (Oct 3), the KSE-100 has lost 6,890 points (-4.05%).

Arif Habib Limited (AHL), in its weekly report, noted that the KSE-100 index closed the week at 163,098, receding 5,892 points (-3.49% WoW). "The overall market faced heavy selling pressure this week, primarily due to profit-taking," it said.

According to the 114th meeting of NAC, the GDP growth for FY25 came in at 3.04%, compared to the earlier estimate of 2.68%. Overall GDP showed upward revisions in the first three quarters, from 1.37% to 1.80% in Q1, from 1.53% to 1.94% in Q2, and from 2.40% to 2.79% in Q3. The economy recorded a growth of 5.66% during Q4, with sectoral growth rates of 0.18% for agriculture, 19.95% for industry, and 3.72% for services, AHL said.

It mentioned that the central government debt shed 1% month-on-month (MoM) to Rs77.5 trillion as of Aug'25 (+10.1% year-on-year compared with Rs70.4 trillion in Aug'24). Oil production increased 0.3% WoW, arriving at 64,493 barrels per day. Gas production edged up 3.1% WoW, settling at 2,900 million cubic feet per day on the back of increase in production at Makori East, Nashpa, and Uch.

Remittances from overseas Pakistanis increased 11% YoY to $3.18 billion during Sept'25 compared to $2.9 billion during Sept'24. On a MoM basis, remittances increased 1.45% while during 1QFY26, they spiked 8% YoY to $9.6 billion. Pakistan's forex reserves rose to $19.81 billion (+$13.7 million), including State Bank's reserves of $14.42 billion (+$20 million), AHL concluded.

Syed Danyal Hussain of JS Global wrote that the KSE-100 index recorded a correction of 3.5% WoW to 163,098 as profit-taking was observed after an extended bull-run of five weeks. Among major sectors, oil & gas exploration and production (E&P), cement, and banking posted negative returns of 5.5%, 4.6%, and 3.4%, respectively. Average daily volumes declined 9% WoW to 1,357 million shares, he said.

During the week, the International Monetary Fund (IMF) concluded its visit to Pakistan for the second review of the ongoing $7 billion Extended Fund Facility, alongside the first review under the Resilience & Sustainability Facility (RSF).

Issues related to flood-related fiscal adjustments, other fiscal slippages, and certain other matters will be under discussion during policy-level talks in the coming days, Hussain said.

Meanwhile, Pakistan reported an 11% YoY growth in remittances, which stood at $3.2 billion in September 2025. On the privatisation front, the process for PIA entered its final stages, with bidding and key negotiations expected to conclude by year-end. Additionally, the government was moving forward with the privatisation of DISCOs to align with the IMF reform commitments, he added.