The Pakistan Stock Exchange (PSX) ended the week on a positive note, with the KSE-100 Index continuing its upward movement. Despite low volumes and a narrow trading range, the index closed at 161,935.19 points, gaining 2,342.29 points week-on-week. Strength in fertilizer and cement stocks led the gains, even as overall activity remained subdued. Average weekly volumes fell 10.5 percent to 794 million shares, while the traded value dropped 1.5 percent to 127 million US dollars.
Sector Performance and Index Contributions
According to Arif Habib Limited, the fertilizer sector added 1,539 points to the index, followed by cement with 729 points. Exploration and production contributed 331 points, while textile composite added 112 points. Investment banks added 43 points during the week.
Negative contributions came from commercial banks, pharmaceuticals, auto assemblers, oil marketing companies and the technology sector. Scrip-wise, Fauji Fertilizer Company added 1,231 points, Engro Fertilizers 249 points, Maple Leaf Cement 233 points, Pakistan Petroleum Limited 202 points and Pioneer Cement 196 points.
Key Decliners and Market Pressures
National Bank of Pakistan weighed down the index by 89 points. Other major negative contributors included The Searle Company, Systems Limited, Pakistan State Oil and Millat Tractors Limited.
Macroeconomic Indicators Remain Stable
Macroeconomic data remained steady during the week. The government raised 492.9 billion rupees in the latest T-bill auction against a target of 550 billion rupees. Yields on one-month and three-month papers fell slightly, while the six-month tenor inched up. The twelve-month yield remained flat.
State Bank of Pakistan reserves increased by 21.8 million US dollars to reach 14.5 billion US dollars. The rupee remained broadly stable at 280.723 against the US dollar.
Economic Activity and Sector Trends
Roshan Digital Account inflows reached 11,313 million US dollars as of October 2025. Out of this, 1,903 million US dollars were repatriated, while 7,263 million US dollars were utilized locally.
Auto sales improved to 17.3 thousand units in October 2025, rising 32 percent year-on-year. Cumulative sales for 4MFY26 stood at 59.6 thousand units, up 46 percent year-on-year. Net metering’s share in power generation grew by 57 basis points in September 2025.
Market View and Analyst Opinions
Syed Zafar Abbas of Zahid Latif Khan Securities told Wealth Pakistan that the market remained “in a normal situation,” oscillating between 159,000 and 161,000 points. He said Friday’s session ended positively above 161,900 points.
He noted strong support from fertilizers after Fauji Fertilizer’s inclusion in the KMI-30 Fertilizer Index. Cement gained momentum due to news reports about Maple Leaf Cement’s interest in acquiring Pioneer Cement. Oil and gas stocks also showed mild support.
Outlook for the Coming Week
Analysts at AKD Securities expect momentum to remain intact. They cite the IMF’s second-review staff-level agreement, improving global credit outlooks and possible foreign inflows from the United States and Saudi Arabia as supportive factors.
According to the brokerage, the KSE-100 continues to trade at attractive valuations of 7.6 times earnings, with a dividend yield of 6.8 percent.