By Moaaz Manzoor
The Pakistan Stock Exchange (PSX) had a rough week as the KSE-100 Index dropped by 5,892 points, or 3.49%. It ended at 163,098.
This decline came after the index opened at 169,179, reached a weekly high of 169,326, and dropped to a low of 162,411. It settled slightly above 163,000, reflecting a pattern of profit-taking by investors across various sectors.
Stock Market Hits a Rough Patch
Overall trading volumes fell by 8.5% week-on-week (WoW), with 1.35 billion shares traded.
The average trading value also took a hit, dropping by 24% to USD 195 million, according to data from Arif Habib Limited (AHL). This shows that fewer investors were willing to make big moves in the market.
Major Sectors See Losses
The biggest losses came from the banking sector, which dropped 1,722 points, followed by Exploration & Production (down 1,081 points) and Cement (down 866 points). Other sectors like Investment Banks and Power also saw losses.
On the flip side, the Technology and Insurance sectors offered some mild support, each adding a few points to the index.
Biggest Losers and Gainers in the Market
When it comes to individual companies, United Bank Limited (UBL) lost 820 points, Engro Corporation (ENGRO) dropped 539 points, and Hub Power Company (HUBC) was down by 477 points. Other notable losers included Lucky Cement (LUCK) and Mari Energies (MARI).
However, Pakistan Telecommunication Company (PTC) and Systems Limited (SYS) managed to show positive results, with PTC gaining 160 points and Systems Limited adding 69 points.
Investor Concerns Impact Market Sentiment
Investor confidence took a hit last week due to concerns over an inquiry into an $11 billion trade data gap by the International Monetary Fund (IMF).
The uncertainty caused by this issue led to selling pressure, especially in the insurance sector, which recorded net sales of USD 25 million. Additionally, regional tensions following a blast in Kabul added to market concerns.
Positive Economic Indicators Amid Market Decline
Despite the stock market’s downturn, Pakistan’s overall economy remains stable. GDP growth for FY25 was revised upward to 3.04%, mainly due to strong industrial growth.
Workers’ remittances saw an 11% increase year-on-year, reaching USD 3.18 billion in September 2025. Cumulative remittances for the first quarter of FY26 were up by 8% year-on-year, totaling USD 9.6 billion.
Pakistan’s foreign exchange reserves grew slightly by USD 13.7 million, reaching USD 19.81 billion, while the Pakistani Rupee appreciated by 0.03% week-on-week, closing at 281.17 per USD.
The government’s total debt also dropped by 1% month-on-month, bringing it down to PKR 77.5 trillion.
Looking Ahead: Analysts Expect Volatility
Despite last week’s market drop, analysts remain hopeful about the future.
Ali Najib, Deputy Head of Trading at Arif Habib Limited, noted that the market is still experiencing bearish momentum but emphasized that market participation was strong.
The stock market remains active, with 1.39 billion shares traded, mainly driven by K-Electric.
In terms of corporate news, two important agreements have been signed regarding K-Electric’s ownership transition and collaborations for future energy needs.
These agreements signal possible improvements in the power sector in the long run.
What’s Next for the Stock Market?
Looking ahead, analysts are keeping a close eye on corporate earnings and updates from the IMF.
The KSE-100 Index is currently trading at a forward price-to-earnings (P/E) ratio of 8.21x for 2026, which is below its 15-year average of 8.59x.
With an attractive dividend yield of 6.3%, the stock market still offers good investment opportunities despite the current volatility.
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