Moaaz Manzoor

The Pakistan Stock Exchange (PSX) closed the week on a steady and positive note, with the benchmark KSE-100 Index extending its upward trend despite subdued volumes and a narrow trading range. The index settled at 161,935.19 points, gaining 2,342.29 points week-on-week, supported mainly by strength in fertilizer and cement stocks amid sector-specific triggers. The average trading volumes dropped 10.5 percent to 794 million shares, while the average value traded declined 1.5 percent to 127 million US dollars.

Sector performance was mixed but largely driven by fertilizers, which contributed 1,539 points to the index, followed by cement (729 points), exploration and production (331 points), textile composite (112 points) and investment banks (43 points), according to Arif Habib Limited. Negative contributions came from commercial banks (129 points), pharmaceuticals (84 points), auto assemblers (70 points), oil marketing companies (64 points) and technology (60 points).

On the scrip-wise front, the largest positive contributions came from Fauji Fertilizer Company (FFC) with 1,231 points, Engro Fertilizers (EFERT) 249 points, Maple Leaf Cement (MLCF) 233 points, Pakistan Petroleum Limited (PPL) 202 points and Pioneer Cement (PIOC) 196 points. Major negative contributors included National Bank of Pakistan (NBP) with 89 points, The Searle Company Limited (SEARL) 51 points, Systems Limited (SYS) 46 points, Pakistan State Oil (PSO) 43 points and Millat Tractors Limited (MTL) 40 points.

Macroeconomic indicators remained broadly stable. In the latest Treasury bill auction, the government raised 492.9 billion rupees against a target of 550 billion rupees, with participation reaching 1,621.7 billion rupees. Yields on one-month and three-month papers fell by 1.2 basis points and 0.6 basis points respectively, while the six-month tenor ticked up by 0.1 basis points and the twelve-month remained unchanged. The State Bank of Pakistan’s foreign exchange reserves increased 21.8 million US dollars week-on-week to 14.5 billion US dollars, while the Pakistani rupee closed largely stable at 280.723 per US dollar.

Roshan Digital Account inflows reached 11,313 million US dollars as of October 2025. Of this, 1,903 million US dollars were repatriated and 7,263 million US dollars were utilised locally, leaving net repatriable liabilities at 2,148 million US dollars. Auto sales improved to 17.3 thousand units in October 2025, up 32 percent year-on-year and 1 percent month-on-month, while cumulative sales in 4MFY26 rose 46 percent year-on-year to 59.6 thousand units.

Net metering’s share in total power generation increased by 57 basis points year-on-year in September 2025. Commenting on weekly activity, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, told Wealth Pakistan that the market “is in a normal situation,” fluctuating between 159,000 and 161,000 points. He said Friday’s session “was positive,” with the index closing “at 161,900+.” Abbas said fertilizer stocks were supported after “Fauji Fertilizer KMI 30 Fertilizer was admitted in the index,” calling it “a heavyweight.”

He added that cement gained momentum due to news of “Maple Leaf taking over Pioneer,” while oil and gas “also contributed a little.” Analysts at AKD Securities expected momentum to continue amid the International Monetary Fund’s second-review staff-level agreement, minimal flood impact, improved global credit ratings and expectations of foreign inflows from the United States and Saudi Arabia. The brokerage highlighted the market’s attractive valuations, noting that the KSE-100 was trading at 7.6 times earnings with a 6.8 percent dividend yield.

Credit: INP-WealthPk