Weekly Market Roundup

October 19, 2025 (MLN): The Pakistan Stock Exchange (PSX) experienced a volatile yet ultimately positive week as the KSE-100 Index closed at 163,806 points, gaining 708 points or 0.4% week-on-week.

The week opened with prevailing caution, as investors engaged in profit-taking amid heightened geopolitical unease triggered by renewed border clashes between Pakistan and Afghanistan, including the closure of major crossings after artillery exchanges, along with the large-scale protest movement of Tehreek‑e‑Labbaik Pakistan (TLP) in Punjab.

Mid-week, however, the market regained composure as the border clashes eased following a cease-fire and the government’s firm stance toward the TLP helped restore sentiment.

The rebound was largely fueled by Pakistan’s successful conclusion of a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the $1.3bn Resilience and Sustainability Facility (RSF).

The agreement, subject to approval by the IMF Executive Board, is expected to unlock $1bn under the EFF and an additional $200 million under the RSF. This development significantly lifted investor confidence, especially as the market entered the corporate results season.

Market Cap:

In terms of valuation, the market capitalization remained stable at around Rs4.86 trillion, showing resilience despite early volatility.

In dollar terms, it recorded a mild uptick from $17.2bn to $17.3bn, reflecting both local investor confidence and a steady PKR/USD exchange rate.

The market’s USD-based return turned positive this week, recording a gain of 0.45% compared to a sharp 3.45% decline last week.

On the macroeconomic front, the Pakistan Bureau of Statistics (PBS) reported a revised number of a widening trade deficit $3.4bn in September 2025.

The government’s proactive participation in debt markets continued to attract attention. The government of Pakistan successfully mobilized ₨933.76bn through the latest auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PIBs-FR).

Meanwhile, the State Bank of Pakistan’s (SBP) foreignexchange reserves inched up to $14.44bn, marking a modest weekly increase of $20.7m, while the Pakistani Rupee remained largely stable, closing at 281.10 against the USD.

In the credit market, an encouraging sign emerged as automobile financing rose by 3.64% month-on-month to Rs304.77bn in September 2025, compared to Rs294.08bn in August 2025.

Industrial output also provided a glimmer of optimism, with the Large-Scale Manufacturing Index (LSMI) registering a 4.44% year-on-year growth during July–August FY26, standing at 113.62 compared to 108.79 last year.

Index Movers:

Sector-wise performance showed a mixed trend, with heavyweights like Commercial Banks (+904 points), Power Generation & Distribution (+204 points), and Technology & Communication (+108 points) leading the rally. Cement (+69 points), Pharmaceuticals (+54 points), and Automobile Assemblers (+41 points) also contributed positively.

Conversely, Fertilizers (-296 points), Oil & Gas Exploration Companies (-222 points), and Investment Banks & Securities (-99 points) dragged the index down. The oil and gas sector, in particular, saw pressure due to profit-taking following earlier gains.

Among individual stocks, United Bank Limited (UBL) emerged as the top performer, adding 321 points to the index, followed by Hub Power Company (HUBC) with 208 points and Bank of Punjab (BOP) with 174 points. Lucky Cement (LUCK), Meezan Bank (MEBL), and Systems Limited (SYS) also provided significant support.

 On the flip side, Engro Fertilizers (EFERT), Engro Corporation (ENGROH), and Oil and Gas Development Company (OGDC) were among the major laggards, collectively eroding over 480 points from the benchmark

FIPI/LIPI:

Foreign investors remained net sellers, offloading $13m worth of equities, primarily from the banking and fertilizer sectors.

In contrast, local institutions provided strong buying support, with companies leading the charge with net purchases worth $30.3m.

 Banks and DFIs followed with net buying of $15.7m, while individuals added another $6.2m to their portfolios.

Mutual funds and insurance companies, however, opted for profit-taking, collectively selling over $36.5 million worth of shares.

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