By Moaaz Manzoor
A quiet start turned into a powerful finish for Pakistan’s stock market rebound 2025 last week. After spending most sessions in the red, the KSE-100 Index rebounded sharply on Friday, cutting back earlier losses and ending the week on a more hopeful note.
KSE-100 Index Ends Week Lower but Shows Strength
The index closed at 161,632 points, marking a weekly drop of 3,862 points or 2.3 percent. Despite the decline, the late surge restored some market confidence after days of weak corporate results and cautious trading.
Trading Volumes and Investor Activity Stay Moderate
Trading remained somewhat muted. Average volumes slipped 35.5 percent week-on-week to 956 million shares, while the average traded value dropped 22.3 percent to USD 137 million. The rebound on Friday was driven by renewed investor optimism and short-term bargain hunting.
Major Sectors Drive Market Movement
Big sectors played a defining role. According to Arif Habib Limited, commercial banks were the biggest gainers, contributing 841 points to the index. The fertilizer sector followed with 132 points, while power generation, paper and board, and real estate added smaller gains.
However, not all industries shared the good fortune. Exploration and production (E&P) companies dragged the index down by 763 points, followed by investment banks with 666 points, oil
marketing companies with 211 points, and cement producers with 163 points.
Top Gainers and Losers of the Week
Among individual stocks, Fauji Fertilizer Company Limited (FFC) led the gainers, adding 335 points, followed by National Bank of Pakistan (NBP) with 291 points, Bank AL Habib Limited (BAHL) with 257 points, United Bank Limited (UBL) with 244 points, and Meezan Bank Limited (MEBL) with 179 points.
On the other hand, Engro Corporation Limited (ENGROH) lost 638 points, Mari Petroleum (MARI) dropped 313 points, while Pakistan Petroleum (PPL), Oil and Gas Development Company (OGDC), and Engro Fertilizers (EFERT) also closed lower.
Economic Indicators and Government Auctions Show Stability
Strong participation marked the government’s latest T-bill auction, which raised PKR 1,134.5 billion, surpassing its target of PKR 950 billion. Bids totaled over PKR 2,132 billion, showing investor appetite for government securities.
Yields fell slightly on short-term papers, while longer tenors rose marginally. Broad money (M2) grew 0.5 percent to PKR 39.8 trillion as of October 17, 2025. The State Bank kept its policy rate steady at 11 percent, and the rupee edged up 0.04 percent to close at PKR 280.9 against the dollar.
Banking indicators also painted a steady picture. Deposits grew 12.3 percent year-on-year to PKR 35.2 trillion, while advances rose 9.4 percent to PKR 13.5 trillion in September 2025.
Oil production improved by 9.9 percent week-on-week to 66,834 barrels per day, though gas output slipped 2.7 percent to 2,785 million cubic feet per day.
Ceasefire Talks Spark Market Rally
Market sentiment shifted dramatically on Friday. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the KSE-100 Index surged 4,899 points (3.13 percent) in one session—its fourth-largest single-day jump—after reports of a ceasefire between Pakistan and Afghanistan, negotiated in Istanbul with Turkish and Qatari mediation.
The news sparked broad buying across banking, fertilizer, technology, and cement stocks.
Outlook for the Coming Week Remains Positive
Looking ahead, AKD Securities expects the upward momentum to continue. Analysts cited the successful IMF staff-level review, improving credit ratings, and lower yields as reasons for optimism.
They also pointed to expected foreign inflows from improving ties with the United States and Saudi Arabia, along with attractive stock valuations and limited investment alternatives.
Experts predict the KSE-100 Index will stay between 160,000 and 170,000 points in the coming sessions, with 160,000 seen as a strong support level and 165,000 as the next target.
Pakistan’s market, it seems, may finally be finding a steady rhythm—just when investors had started to lose the beat.
Author Profile
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Moaaz Manzoor is a business correspondent who meticulously tracks Pakistan’s crucial but neglected natural resource industries.
He specializes in exposing inefficiencies and charting the course of modernization, highlighting how efforts to mechanize mining have dramatically cut marble and granite wastage, driving a recovery and attracting vital investment.
