The Pakistan Stock Exchange (PSX) had a choppy week, with the KSE-100 index shedding 635 points, or 0.5%, to settle at 117,807.
Early losses stemmed from worries over cement royalty hikes and the IMF’s resistance to tariff cuts. Yet, a staff-level IMF agreement under the Extended Fund Facility (EFF), unlocking a $1 billion tranche, lifted investor confidence. A new 28-month, $1.3 billion Resilience and Sustainability Facility (RSF) deal added optimism.
On Monday, the index experienced a sharp decline of 2,003 points after reaching record highs the previous week, primarily due to profit-taking by institutional investors. On Tuesday, there was a modest recovery, with the index gaining 196 points as optimism grew for a solution to the power sector’s circular debt issue. Wednesday brought a strong rebound, with the index rising by 1,139 points, driven by positive news from the IMF. However, Thursday saw the rally stall, with only a slight increase of 34 points, resulting in a quiet close to the week.
Read: Pakistan’s Forex Reserves Decline by $540 Million
Economic and Sector Highlights
Pakistan’s GDP grew 1.73% in Q2 FY25, though 1HFY25 growth dipped to 1.54% from 2.33% last year. The State Bank of Pakistan (SBP) raised Rs640 billion in a T-bill auction, just shy of its Rs650 billion goal, per AHL.
Sector-wise, fertilisers (-333 points), technology (-280 points), and cement (-196 points) dragged the market down, while banks (+488 points) and pharma (+76 points) offered support. Top losers included Fauji Fertiliser (-239 points) and Systems Limited (-198 points), countered by UBL (+462 points) and Hubco (+169 points).
Read: Pakistan, IMF Reach Staff-Level Agreement on EFF New $1.3b RSF Fund
Foreign investors bought $3.92 million in stocks, flipping from last week’s $7.96 million sell-off, with oil marketing firms drawing $4.2 million. Trading volumes surged 38% to 317 million shares daily, and traded value climbed 27% to $87 million.
The KSE-100 rose 4% month-on-month thanks to the IMF deal, progress on circular debt, and talk of cheaper electricity. Key updates included Mari Energies’ Shewa production start, a 29% jump in 1HFY25 tax collection, and SBP raising Rs981 billion via bonds. Will these gains hold as Pakistan’s economy steadies? Investors are watching closely.
