KARACHI: The market heads into next week with confidence, supported by expectations of continued momentum in the KSE-100 Index following the IMF Executive Board’s approval of the second review and growing optimism about upcoming foreign inflows.
Analysts at AKD Research credited the positive outlook to improved ties with the US and Saudi Arabia, attractive equity valuations and falling fixed-income yields. The benchmark is trading at a multiple of 7.7x and offering a dividend yield of 6.7 per cent, making equities appealing in the absence of compelling alternative investment options.
With the IMF’s third tranche of $1.2 billion up for consideration on December 8, investors expect another uplift in sentiment, keeping the market on a steady upward trajectory.
The PSX kept its bullish run through the week as news of the IMF Board meeting set the tone for stronger risk appetite. A major boost came when Petroleum Minister Ali Pervaiz Malik confirmed progress on Reko Diq’s financial close after securing $3.5 billion in loans, which ignited a sharp rally in the oil and gas exploration sector. This sector alone added 843 points to the index.
Fertiliser stocks also surged after Fauji Fertilizer Company was added to the Sharia-compliant index, contributing 1,582 points.
By the end of the week, the KSE-100 posted a rise of 4,575 points, up 2.8 per cent week on week (WoW), closing at 166,678 points. However, market participation slipped, with average daily volumes down 14.2 per cent to 1.1 billion shares.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) improved slightly by $9 million to reach $14.6 billion, while the rupee appreciated 0.04 per cent to settle at 280.52 per dollar.
Weekly developments also included the Special Investment Facilitation Council (SIFC) revealing a business-friendly roadmap, the prime minister targeting $1 billion in trade with Bahrain, a Chinese group committing $1.5 billion for an industrial park, strong international deal-making worth $615 million at Food Exhibition 2025, and the IMF acknowledging a significant turnaround at the Competition Commission of Pakistan (CCP).
Sector performance was led by leather and tanneries, fertiliser, commercial banks, technology and communication, and cement, while jute, modarabas, refinery, leasing companies, and glass and ceramics lagged. Banks, DFIs, and mutual funds emerged as major buyers with net inflows of $14.5 million and $9.5 million, while foreigners and individuals recorded outflows of $12.9 million and $9.1 million.
Company-wise, the strongest performers included SSGC, SRVI, PIOC, HUMNL, and FATIMA, while PKGP, BWCL, YOUW, CNERGY and ATRL ended as the weakest.
Muhammad Waqas Ghani of JS Research credited broad-based buying across key sectors, despite a 47 per cent decline in traded volumes, noting the government’s successful mobilisation of over one trillion rupees through T-bills, PIBs and Sukuk auctions, with yields sliding slightly. He added that the IMF highlighted risks around internal audits and parliamentary oversight, while Barrick’s interim CEO Mark Hill reaffirmed full commitment to the Reko Diq project.
Ali Najib of Arif Habib Ltd said the index maintained a strong trajectory throughout the week, touching a high of 167,005 points before closing at 166,677, reflecting persistent buying interest across the board.
