Pakistan Stock Exchange (PSX) remained positive throughout the week, closing at a record high of 162,257 points on Friday, September 26, 2025, posting a weekly gain of 4,220 points or 2.67%WoW.
Bullish sentiments were supported by Prime Minister Shehbaz Sharif’s successful meetings with US President Trump on Thursday, and the signing of long-awaited PKR1.2 trillion debt arrangement with banks to retire power sector circular debt.
Consequently, E&Ps and Power sector scrips remained highest index contributors, along with Commercial Banks. Moreover, Pakistan is expecting a delegation of Saudi businesses to explore bilateral trade opportunities following the recent strategic defense agreement.
The said positives boosted investors’ confidence, driving weekly market participation to an all-time high, with average daily traded volume increasing by 20%WoW to 2.2 billion shares.
Fertilizer sales surged in August 2025, with urea and DAP offtakes rising 46%YoY and 53%YoY, respectively, supported by discount offerings and lower inventories.
Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$22 million to US$14.4 billion as of September 19, 2025. PKR appreciated by 0.03%YoY to close at PKR281.37 to a US dollar.
Other major news flow during the week included: 1) IMF presses Pakistan on missed tax targets, 2) Power tariffs set for 10% cut after PKR1.225 trillion debt repayment, 3) Japan intends to invest in Reko Diq project, 4) Unilateral tariff concessions on 700 items sought from China, and 5) FBR chief says no proposal for mini-budget.
Power generation, E&P, and Pharmaceutical were amongst the top performing sectors, while Woollen, Leasing companies, and textile spinning were the laggards.
Major selling was visible from Bank and Foreigners with net sell of US$29.5 million. Mutual funds and Individuals emerged net buyer with net buy of US$42.3 million.
Top performing scrips of the week were, KEL, BWCL, HUBC, DGKC, and MARI, while laggards included: TGL, EPCL, POML, PKGP, and BNWM.
According to AKD Securities, PSX is expected to remain positive in the coming weeks, with the upcoming IMF review remaining in the limelight.
The benchmark index is anticipated to sustain its upward trajectory, with a target of 165,215 points by end December 2025, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.
The top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, ILP, and SYS.