Moaaz Manzoor

The Pakistan Stock Exchange closed the week slightly higher as a late-session rally helped the benchmark index finish in positive territory, offsetting subdued sentiment earlier in the week amid heightened geopolitical uncertainty. The KSE-100 Index remained largely range-bound during the week and settled at 185,099 points, recording a gain of 689 points, or 0.4% week-on-week. Market sentiment remained muted for most sessions amid escalating geopolitical tensions, keeping investors cautious.

However, a strong rebound on Friday—supported by fresh liquidity, easing geopolitical pressure, and rising expectations of a potential policy rate cut in the upcoming Monetary Policy Statement (MPS)—helped the market close on a firmer note. According to Arif Habib Limited, sector-wise contributions to the index were led by Exploration and Production (E&P) stocks, which added 1,242 points, followed by Banks (163 points), Property (75 points), Paper and Board (53 points), and Automobile Parts (53 points).

In contrast, negative contributions came from Fertilizer (204 points), Technology (130 points), Pharmaceuticals (129 points), Cement (124 points), and Insurance (110 points), reflecting selective selling pressure across these segments. On a scrip-wise basis, the largest positive contributions were recorded by Oil and Gas Development Company Limited, which added 789 points, followed by Pakistan Petroleum Limited (558 points), National Bank of Pakistan (213 points), Askari Bank Limited (210 points), and Attock Limited (144 points).

Meanwhile, index drag came from Systems Limited, Fauji Fertilizer Company Limited, United Bank Limited, MCB Bank Limited, and Sazgar Engineering Works Limited, which collectively capped broader upside during the week. Market activity softened compared to the previous week. Average daily volumes declined 24.3% week-on-week to 982 million shares, while average traded value fell 25.8% WoW to USD 208.8 million, indicating cautious participation amid ongoing external uncertainty.

Commenting on market performance, Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, said the Pakistan Stock Exchange remained resilient despite volatility, with the KSE-100 Index gaining 0.4% week-on-week on improving sentiment. Meanwhile, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, told Wealth Pakistan that January had been a mixed month for equities due to the Iran–United States conflict, but easing tensions helped global markets rebound, supporting a strong close on Friday at the PSX.

Looking ahead, AKD Securities expects the KSE-100 Index to remain positive in the coming week, supported by expectations of monetary easing and the approaching policy decision. Similarly, Arif Habib Limited noted that the market is currently trading at a price-to-earnings ratio (PER) of 9.2 times, offering a dividend yield of around 5.4%, and that select stocks are expected to remain in focus.

Credit: INP-WealthPk