By Moaaz Manzoor
The Pakistan Stock Exchange (PSX) closed last week on a strong note. The KSE-100 Index finished at 168,990, up 6,733 points or 4.15% compared to the previous week.
During trading, the index even reached a historic intraday high of 169,989 before settling just below the symbolic 169,000 mark.
Trading activity showed mixed signals. Average weekly volumes fell 11.2% to 1,484 million shares, but the average traded value rose 20.3% to USD 256.7 million, showing continued institutional investment.
In the T-Bill auction, yields increased by 19–40 basis points, with the State Bank of Pakistan (SBP) raising PKR 730.4 billion against a target of PKR 750 billion, supported by strong participation of PKR 1,494.7 billion.
Pakistan’s foreign exchange reserves rose slightly to USD 19.80 billion, including USD 14.40 billion in SBP reserves. The rupee also strengthened slightly by 0.03% to 281.37 per dollar.
On the economic side, CPI inflation rose to 5.6% year-on-year (YoY) in September 2025, up from 3.0% in August. The trade deficit widened to USD 3.3 billion in September, taking the 1QFY26 deficit to USD 9.4 billion, up 32.9% YoY.
Exports totaled USD 2.5 billion, down 11.7% YoY but 3.6% higher month-on-month (MoM), while imports rose 14% YoY to USD 5.8 billion.
Sector-wise, some industries showed positive growth. Cement dispatches rose 7.05% YoY to 4.25 million tons in September, bringing 1QFY26 volumes to 12.16 million tons, up 16.3% YoY.
Urea sales increased 17% YoY to 429,000 tons, though DAP sales dropped 47% YoY to 71,000 tons. Petroleum sales were up 8% YoY in September and 6% cumulatively in 1QFY26.
Banks led the gains in the index with 4,313 points, followed by Fertilizer (+1,204 points), Oil Marketing Companies (+303 points), Exploration & Production (+298 points), and Technology (+269 points).
Sectors that lost points included Textiles (-102 points), Cement (-57 points), FMCGs (-55 points), Auto Parts (-25 points), and Miscellaneous (-21 points).
Top-performing companies were UBL (+949 points), FFC (+807 points), MEBL (+722 points), HBL (+584 points), and BAHL (+487 points). On the other hand, PPL (-144 points), DGKC (-112 points), MTL (-107 points), OGDC (-57 points), and PIOC (-49 points) limited overall gains.
Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the PSX rally shows strong investor confidence.
“Buying interest stayed strong in fertilizer, banks, power, tech, and insurance,” he told this reporter, noting 1,571 million shares traded with a total value of PKR 78.6 billion.
AKD Securities Limited said momentum is likely to continue, supported by the IMF’s second review, better credit ratings, and potential foreign investment flows.
They also highlighted that the market is attractively valued, with the KSE-100 trading at 8.8x earnings and offering a 6.7% dividend yield.
With the index approaching the 170,000 mark, analysts expect positive sentiment to continue, though profit-taking and economic updates will guide the next moves.
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