RECORDER REVIEW

KARACHI: The Pakistan Stock Exchange (PSX) experienced a volatile week, oscillating between record highs and profit-taking, before closing nearly unchanged.

The benchmark KSE-100 Index touched an all-time intraday peak of 157,817 points, but sustained selling later dragged it down to close the week at 154,440 points, marking a modest gain of 163 points or 0.1 percent WoW.

The BRIndex100 posted a strong performance, closing the week at 15,839.06 points, up 30.9 points from the previous week. Average daily turnover stood at 895.87 million shares, indicating increased investor participation. Meanwhile, the BRIndex30 mirrored this positive trend, ending the week at 48,929.00 points with a notable week-on-week gain of 663.72 points. Its average daily turnover reached 535.99 million shares, highlighting sustained activity in the market’s most liquid stocks.

Market capitalisation increased by 0.3 percent WoW to Rs18.19 trillion or equivalent to US$64.6 billion. Average daily traded volumes rose 2.2 percent to 1.09 billion shares, while the average traded value climbed 4 percent to US$185 million.

Sector-wise, power with 184 points, investment banks 179 points, exploration and production 154 points, textiles 137 points, and chemicals 105 points contributed positively. On the downside, commercial banks 458 points, cement 243 points, FMCG 100 points, glass 44 points, and insurance 34 points, eroded index gains.

Top stock contributors included ENGROH 200 points, Meezan Bank 188 points, HUB Power 188 points, Mari Petroleum 178 points, and NBP 150 points. Negative contributions were led by UBL 574 points, OGDC 118 points, Maple Leaf Cement 111 points, Fauji Cement 98 points, and MCB 69 points.

Volume leaders included K-Electric 82.7m shares, WorldCall Telecom 60.2m, Bank of Punjab 60.1m, First National Equities 39.4m, and Agha Steel with 37m.

Among individual stocks, LOTCHEM with 18.3 percent, KTML 16.1 percent, PAKT 11.4 and MUGHAL 9.1 percent were the week’s top gainers. Conversely, Bank of Punjab 9.5 percent, NATF with 8.1 percent, and JVDC 7.7 percent ranked among the worst performers

Local investors were net buyers of US$8.4 million, led by individuals, companies, and banks. Mutual funds and broker proprietary trading, however, turned net sellers. Foreign investors remained net sellers of US$8.4 million, with corporates leading the outflows, particularly in commercial banks and E&P stocks.

On the economic front, the week opened on a strong note, buoyed by Pakistan’s signing of MoUs worth US$500 million with U.S. firms in the mineral sector and US$4 billion with Chinese companies in agriculture. Investor confidence was further boosted as the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) extended US$285 million in guarantees, enabling Pakistan to issue its first-ever Panda bonds worth US$250 million.

Overseas inflows provided another lift. Workers’ remittances rose 7 percent YoY to US$3.14 billion in August 2025, though they fell 2 percent month-on-month basis. The State Bank’s reserves inched up by US$34 million to US$14.3 billion, while the rupee closed steady at 281.56 per U.S. dollar. However, on the fiscal side, central government debt climbed to Rs 77.9 trillion in June 2025, reflecting a 2.4 percent MoM increase to Rs 1.84 trillion.

Auto sales continued their rebound, surging 62 percent YoY and 27 percent MoM in August to 14,050 units, with cumulative sales in the first two months of FY26 up 45 percent YoY at 25,100 units.

Looking ahead, analysts say, investors are closely watching the IMF delegation’s visit on September 25 for the second review of Pakistan’s US$7 billion Extended Fund Facility (EFF), as well as the government’s upcoming industrial policy that could abolish peak power tariffs and remove cross-subsidies to boost export competitiveness.

According to JS Global and Arif Habib Limited, the market’s near-term trajectory will hinge on the upcoming monetary policy decision, where the policy rate is expected to remain unchanged. While corporate earnings and improving remittances provide support, analysts caution that flood-related disruptions, debt accumulation, and foreign outflows could cap momentum.