KARACHI, PAKISTAN: The Pakistan Stock Exchange (PSX) ended the week on a subdued note, slipping by 502 points, or 0.31%, to close at 163,304.13, as investors remained cautious despite encouraging economic indicators.
Market activity stayed dull, with average daily volume dropping to 1.5 billion shares and traded value averaging Rs49.6 billion. Profit-taking after previous rallies, rumours of mutual fund redemptions, and muted investor participation weighed heavily on overall sentiment.
Economic fundamentals, however, painted a brighter picture. Pakistan recorded a current account surplus of $110 million in September — a notable turnaround from a $52 million deficit in the same period last year. Foreign Direct Investment (FDI) stood at $186 million in September, showing a slight month-on-month rise, although first-quarter inflows remained 34% lower year-on-year.
Adding to the optimism, IT exports reached an all-time high of $366 million in September, reflecting a 25% year-on-year increase. Power generation saw a modest 0.8% growth, while the cost of generation fell 15% to Rs7.09 per unit. The country’s foreign exchange reserves also improved marginally, reaching $14.45 billion, and the rupee remained stable around Rs281 against the US dollar.
Despite these gains, investor confidence did not follow suit. Analysts suggest that market participants are still wary amid corporate uncertainty, global economic headwinds, and a lack of fresh buying triggers. Many expect the PSX to remain range-bound between 163,000 and 170,000 points until clearer fiscal signals emerge.
While economic data shows signs of resilience, the disconnect between fundamentals and market behaviour continues — highlighting the fragile nature of investor sentiment in Pakistan’s capital markets.
This story has been reported by PakTribune. All rights reserved.