AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The stock market sustained its bullish momentum this week, driven by investor confidence after a historic meeting between the Prime Minister and the US President at the Oval Office. The benchmark index rose by 6,733 points, marking a 4.1% increase week-over-week, to close at a record high of 168,990 points. However, market participation weakened by 19.8% compared to the previous week, with an average daily traded volume of 1.8 billion shares, down from 2.2 billion shares.
On the macroeconomic front, inflation for September 2025 reached 5.6% year-over-year, the highest level in the past 10 months, attributed to recent flooding. In anticipation of inflation trends, yields on 1, 3, 6, and 12-month Treasury bills increased by 41, 20, 21, and 19 basis points, respectively, suggesting that investors expect the policy rate to remain unchanged shortly.
The trade deficit for September 2025 widened to $3.3 billion, compared to a deficit of $2.3 billion in the same period last year. In the cement sector, offtakes for September 2025 were at 4.25 million tons, up 7% year-over-year, driven by a 14% increase in domestic sales. Similarly, in the oil marketing companies sector, offtakes for September 2025 reached 1.4 million tons, reflecting an 8% year-over-year increase.
On the currency front, the Pakistani Rupee appreciated by 0.04% week-over-week against the US dollar, closing the week at 281.26 PKR/USD.
Looking ahead, the momentum in the KSE-100 index is expected to continue. Factors such as the smooth completion of the IMF’s second review, minimal flood impact, and improved credit ratings by global agencies amid falling fixed income yields are likely to maintain investor sentiment. The prospect of foreign portfolio and direct investment flows, bolstered by improved relations with the US and Saudi Arabia, further supports this outlook.
According to AKD Securities Limited, the attractive valuation of local equities, with the KSE-100 trading at a multiple of 8.8x and offering a dividend yield of 6.7%, presents limited alternative investment avenues. The firm’s top stock picks include OGDC, PPL, PSO, FFC, ENGROH, MCB, LUCK, DGKC, FCCL, INDU, and SYS.