Pakistan Stock Exchange (PSX) sustained its bullish momentum during this past week, driven by investors’ confidence following the historic meeting between the Prime Minister and US President at the Oval Office. The benchmark index was up 6,733 points or 4.1%WoW to close at a historic high of 168,990 points on Friday October 03, 2025. However, market participation plunged by 19.8%WoW to an average daily traded volume to 1.8 billion shares, as compared to 2.2 billion shares traded a week ago.
On the macroeconomic front, inflation for September 2025 was recorded at 5.6%YoY, marking the highest level in the past 10 months, given the recent flooding. In anticipation, yields on tenors of T-Bills in the last auction increased, reflecting investor expectations that the policy rate will remain unchanged in the near term.
Trade deficit for September 2025 increased to US$3.3 billion, from a deficit of US$2.3 billion during the same period last year.
Cement sector, offtakes for September 2025 was recorded at 4.25 million tons, up 7% YoY, given 14%YoY surge in domestic sales.
Offtakes of OMCs during September 2025 was registered at 1.4 million tons, up by 8%YoY.
Other major news flow during the week included: 1) Prime Minister solicited US investment in meeting with President Trump, 2) Trade with Central Asia, Kabul surges to US$2.4 billion, 3) Petroleum Division to discuss GST waiver for petroleum products with IMF, 4) Pakistan-IMF talks on US$ 7billion EFF and RSF reviews begins, and 5) FBR notifies 40% regulatory duty on import of used cars.
Commercial Banks, Fertilizer, Refinery, Vanaspati & Allied Industries and Transport were amongst the top performers, while Modarabas, Jute, Textile Spinning, Close-end Mutual Funds and Textile Composite were amongst the laggards.
Major buying was recorded by Mutual Funds and Individuals with a net buy of US$82.2 million, while Insurance, Companies and Banks/DFIs remained the highest seller, with a net sell of US$71.4 million.
Top performing scrips of the week were: BOP, SAZEW, FABL, YOUW and FATIMA, while laggards included: HUMNL, NPL, RMPL, MTL, and PIOC.
AKD Securities foresees the momentum in the benchmark index to continue given smooth completion of IMF 2nd review, minimal flood impact and improved credit ratings by global agencies amid falling fixed income yields.
Investors’ sentiments are expected to further improve on the likelihood of foreign portfolio and direct investment flows, driven by improved relations with the US and Saudi Arabia.
The outlook is supported by the lack of alternative investment avenues and the attractive valuation of local equities.
Top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, and SYS.