KARACHI: The Pakistan Stock Exchange (PSX) closed the week in green territory, showing resilience despite mounting geopolitical tensions and profit-taking spells. The benchmark KSE-100 Index recorded a 0.44% rise, reflecting cautious optimism among investors navigating a volatile environment.
Throughout the week, the market swung between gains and corrections, with an average daily volume of 1.8 billion shares and a traded value of around Rs55.6 billion. Analysts attributed the subdued sentiment to regional instability, particularly concerns related to Afghanistan, as well as fluctuations in global oil prices and currency pressures.
However, renewed confidence emerged after Pakistan secured a staff-level agreement with the International Monetary Fund (IMF), paving the way for a $1.2 billion disbursement. The move bolstered investor morale and injected a sense of stability into the capital market.
Economic indicators presented a mixed picture — while foreign exchange reserves rose to $14.44 billion, the trade deficit widened to $3.4 billion in September, marking a 33.8% year-on-year increase in the first quarter of FY26. Experts warn that this growing deficit could weigh on external accounts if exports do not recover soon.
Sector-wise, refiners performed strongly with a 21.6% annual growth, driven by a 32.1% surge in high-speed diesel (HSD) demand. Conversely, leasing, textile-weaving, and leather sectors underperformed, facing declines of up to 3%.
Market strategists note that the KSE-100’s price-to-earnings ratio of 8.5x — slightly below its 15-year average — and a dividend yield of 5.5% signal value opportunities for long-term investors, provided political stability and policy continuity prevail.
This story has been reported by PakTribune. All rights reserved.