By Moaaz Manzoor
The Pakistan Stock Exchange (PSX) had a rollercoaster week, with investors cautious amid profit-taking and market consolidation. The KSE-100 Index Pakistan closed at 159,593 points, down 2,038 points or 1.3 percent from the previous week, though a rebound on Friday helped regain some ground.
KSE-100 Index Pakistan Shows Weekly Market Volatility
Trading activity slowed as average volumes fell 7.2 percent to 887 million shares, while the value traded dropped 6.2 percent to 129 million US dollars.
Commercial banks led the losses, dragging the index down by 1,443 points, followed by cement (584 points), oil marketing companies (219 points), technology (207 points), and exploration and production (202 points).
Gains came mainly from miscellaneous sectors (327 points), fertilizer (174 points), refineries (94 points), power (91 points), and investment banks (72 points).
Trading Activity Declines Amid Profit-Taking Pressure
On an individual company level, Pakistan Services Limited (PSEL) added 345 points, Fauji Fertilizer Company (FFC) gained 292 points, Dawood Hercules Corporation (DHPL) rose 114 points, Millat Tractors Limited (MTL) added 89 points, and Attock Refinery Limited (ATRL) increased 86 points.
Conversely, Meezan Bank Limited (MEBL), Habib Bank Limited (HBL), Lucky Cement Limited (LUCK), Bank Al Habib Limited (BAHL), and United Bank Limited (UBL) pulled the index down.
Macroeconomic Factors Impact Stock Market Trends
Macroeconomic indicators presented a mixed picture for the market. The Pakistan Bureau of Statistics (PBS) reported that the trade deficit widened to 3.2 billion US dollars in October 2025, with exports at 2.8 billion (down 4.5 percent year-on-year) and imports at 6.1 billion (up 20.2 percent).
The cumulative deficit for the first four months of FY26 reached 12.6 billion US dollars, rising 38 percent compared to last year. Inflation edged higher as the Consumer Price Index (CPI) hit 6.2 percent in October, up from 5.6 percent in September. The Pakistani rupee remained stable, gaining slightly 0.03 percent to close at 280.8 against the US dollar.
Remittances and Domestic Demand Support Market Gains
Some positive signs emerged as remittances rose 12 percent year-on-year to 3.42 billion US dollars in October, with total inflows during the first four months of FY26 reaching 12.96 billion, up 9 percent.
Cement dispatches also grew 7.3 percent to 4.8 million tons, supported by strong domestic demand.
Pakistan Investment Bonds Boost Investor Confidence
Arif Habib Limited (AHL) highlighted strong interest in the government’s latest Pakistan Investment Bonds (PIB) auction, which raised 785.2 billion Pakistani rupees against a target of 400 billion.
Analysts noted that the KSE-100 Index is trading at a price-to-earnings ratio (PER) of 8.07 times, slightly below its 15-year average of 8.59 times, offering a 6 percent dividend yield.
Ali Najib, Deputy Head of Trading at AHL, said the market saw “some respite after three consecutive bearish sessions,” with banks and exploration and production companies driving Friday’s gains.
Analysts Predict KSE-100 Index Pakistan to Gain Momentum
Looking ahead, analysts at AKD Securities expect the KSE-100 Index to gain momentum. Positive factors include the staff-level agreement of the IMF’s second review, improved global credit ratings, and potential foreign inflows from the US and Saudi Arabia.
“With equities trading at attractive valuations—KSE-100 at 7.4 times PER and a 6.6 percent dividend yield—investor confidence is likely to improve further,” the report stated.
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.
