By Moaaz Manzoor
ISLAMABAD –The Pakistan Stock Exchange (PSX) ended the week at a historic high as robust sectoral flows and strong liquidity lifted the KSE-100 Index by 5,659 points, or 3.8% week-on-week (WoW), closing at 154,277.
Trading activity remained vibrant, with average volumes up 19% WoW to 1.07 billion shares and traded value rising 45% to USD 178 million.
Sector-wise, Cement contributed 1,178 points, followed by Banks (+1,087pts), Exploration & Production (+658pts), Power (+618pts), and Investment Banks (+593pts). Negative drags were minimal, led by FMCG (-31pts) and Sugar (-14pts).
Top Performing Stocks and Sector Contributions
Key drivers included HUBC (+667pts), LUCK (+574pts), ENGROH (+534pts), NBP (+404pts), and FFC (+310pts). On the other hand, PKGP (-89pts) and LCI (-28pts) contributed modestly on the downside. Liquidity was exceptional, with BOP dominating volumes at 146 million shares.
Arif Habib Limited noted that macroeconomic indicators further buoyed sentiment. CPI for August slowed to 3% YoY from 4.1% in July, while the PKR appreciated slightly by 0.04% WoW to 281.65 per dollar. FX reserves inched up by USD 42 million to USD 19.66 billion, maintaining import cover at 2.3 months.
Strong Fundamentals in Key Sectors
Sector fundamentals stayed strong. Fertiliser offtake jumped in August, with urea sales up 46% YoY to 817,000 tons and DAP rising 40% to 125,000 tons, while inventories eased to 1 million tons.
Petroleum sales grew 7% YoY to 1.3 million tons, supported by lower MS prices and back-to-school demand. Cement dispatches rose 12.5% YoY to 3.8 million tons, driven by reconstruction and robust exports (+22.1% YoY).
Monetary Policy and T-Bill Auctions
On the monetary front, the State Bank raised PKR 515.2 billion in the latest T-Bill auction against a PKR 400bn target, with strong participation of PKR 1.47 trillion and lower yields in the 1-month tenor.
Market experts credited the rally to improved macros and healthy sectoral flows. Muhammad Waqas Ghani, Head of Equity Research at JS Global Capital, told Wealth Pakistan: “KSE-100 Index continued with the positive momentum throughout the week, settling at 154,277 points, up 3.8% WoW.
Average daily turnover improved 19% WoW to 1,068mn shares. Foreign investors remained net sellers during the week, with an outflow of US$9.5mn, which was largely offset by local buying, primarily from Individuals and Mutual Funds.”
Analyst Insights on KSE-100 Market Trends
Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, told Wealth Pakistan: “Market remained upbeat during the week, with the KSE-100 rising 3.8% WoW to close at a record 154,277 points. The rally was supported by the PM’s successful visit to China and softer-than-expected August inflation.
Sector-wise, Cement gained on expectations of strong demand ahead, while Banks advanced on anticipation of continued robust corporate results.”
Looking ahead, analysts expect the results season to keep certain scrips in focus, while narrowing trade gaps and expectations of a farmer relief package could lend further support.
With valuations remaining compelling, the forward PER stands at 7.8x—below than the 15-year average of 8.59x—suggesting that market momentum is likely to persist.