PSX Ends Week Positive Despite Geopolitical Volatility
The Pakistan Stock Exchange (PSX) closed the week with mild gains despite strong volatility. The KSE-100 index rose 0.44%, reflecting cautious optimism among investors. However, the market faced pressure from profit-taking and rising geopolitical tensions, especially with Afghanistan.
According to Topline Securities, institutional investors booked profits due to uncertainty in the region. Daily trading volume averaged 1.8 billion shares, with a traded value of Rs55.6 billion.
Arif Habib Ltd reported a volatile trend throughout the week. The market lost momentum early on but regained strength by Friday. The improvement came as political and regional tensions eased, boosting investor confidence.
IMF Progress and Economic Updates
Positive sentiment also grew from Pakistan’s recent Staff-Level Agreement with the IMF. The agreement, once approved, could unlock $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility.
By the week’s end, the KSE-100 gained 708 points, closing at 163,806. The Pakistan Bureau of Statistics reported a $3.4 billion trade deficit in September. However, the government exceeded its bond auction targets, raising Rs506.7 billion through PIBs and Rs775.9 billion via treasury bills.
Refinery output rose by 21.6% year-on-year, supported by higher domestic demand and better control over oil smuggling. Meanwhile, the rupee remained stable at 281.10 per dollar, while reserves at the State Bank increased slightly to $14.44 billion.
Large-scale manufacturing grew 0.5% in August, and inflows through Roshan Digital Accounts jumped 17% year-on-year.
Investor Outlook
Market experts expect selective stocks to perform well as the results season continues. Any positive IMF development could further lift sentiment. The KSE-100 trades at an 8.5x P/E ratio, below its long-term average, offering an attractive 5.5% dividend yield.
Despite global tensions, the market showed resilience. Analysts believe Pakistan’s improving IMF relations and investment flows will support the PSX in the coming weeks.
