ISLAMABAD, Nov 2 (Wealth Pakistan): The benchmark KSE-100 Index remained under pressure for most of the outgoing week before staging a sharp rebound on Friday that trimmed earlier losses. The index closed the week at 161,632 points, down 3,862 points or 2.3 percent on a week-on-week basis.
Market Performance
Market participation remained moderate, with average trading volumes declining 35.5 percent week-on-week to 956 million shares. The average traded value also dropped 22.3 percent to USD 137 million. The late-week recovery helped offset earlier declines driven by weak corporate results and cautious investor sentiment.
According to Arif Habib Limited, commercial banks led the positive contribution to the index with 841 points, followed by fertilizer companies with 132 points, power generation and distribution with 26 points, paper and board with 23 points, and the property sector with 11 points.
In contrast, exploration and production (E&P) companies dragged the index down by 763 points, followed by investment banks with 666 points, oil marketing companies (OMCs) with 211 points, glass and ceramics with 185 points, and the cement sector with 163 points.
Scrip-Wise Movement
Among individual scrips, the major gainers were Fauji Fertilizer Company Limited (FFC), adding 335 points; National Bank of Pakistan (NBP), 291 points; Bank AL Habib Limited (BAHL), 257 points; United Bank Limited (UBL), 244 points; and Meezan Bank Limited (MEBL), 179 points.
The top laggards included Engro Corporation Limited (ENGROH), which lost 638 points; Mari Petroleum Company Limited (MARI), 313 points; Pakistan Petroleum Limited (PPL), 169 points; Oil and Gas Development Company Limited (OGDC), 166 points; and Engro Fertilizers Limited (EFERT), 145 points.
Macroeconomic Developments
On the macroeconomic front, the government raised PKR 1,134.5 billion in the latest T-bill auction against a target of PKR 950 billion, with strong participation amounting to PKR 2,132.4 billion. Yields declined on the 1-month and 3-month papers by 11 and 0.1 basis points respectively, while showing a slight increase on the 6-month and 12-month papers.
Broad money (M2) rose 0.5 percent week-on-week to PKR 39.8 trillion as of October 17, 2025. The State Bank of Pakistan kept the policy rate unchanged at 11 percent, in line with market expectations, while the rupee appreciated 0.04 percent against the US dollar to close at PKR 280.9.
Banking deposits grew 12.3 percent year-on-year to PKR 35.2 trillion, while advances increased 9.4 percent to PKR 13.5 trillion in September 2025. Oil production improved by 9.9 percent week-on-week to 66,834 barrels per day, while gas output fell 2.7 percent to 2,785 million cubic feet per day.
Market Sentiment and Outlook
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the index staged a strong comeback in the last session of the week, with the KSE-100 surging 4,899 points (3.13 percent) — its fourth-largest single-day gain. He attributed the rebound to optimism over a ceasefire agreement between Pakistan and Afghanistan, brokered in Istanbul with Turkish and Qatari mediation. Broad-based buying dominated the session, led by banking, fertilizer, technology, and cement stocks.
AKD Securities expects the market’s upward momentum to continue amid the successful IMF staff-level review, improving credit ratings, and easing yields. The brokerage anticipates stronger foreign inflows driven by improved relations with the United States and Saudi Arabia, attractive equity valuations, and limited alternative investment opportunities.
Analysts forecast that the index will consolidate within the 160,000–170,000 range, with strong support at the 160,000 level and potential to test 165,000 points in the coming sessions.