KSE-100 surges 1,109 points on upbeat policy signals
Pakistan’s benchmark KSE-100 index rose 1,109 points this week, closing at 146,492, as investor confidence improved on policy reforms and a credit rating upgrade.
Staff Report
Policy optimism drives momentum in stock market. The government’s plan to phase out the super tax over five years boosted sentiment across corporate sectors. Confidence strengthened further after Moody’s upgraded Pakistan’s sovereign rating from Caa2 to Caa1, reflecting a more stable economic outlook.
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Still, challenges persisted as circular debt payments continued to pressure the Energy & Power and Oil Marketing sectors, weighing down the index by 214 and 159 points, respectively.Market Confidence Soars with All-Time PSX Peak
Sector and company highlights
Leasing companies advanced 13.5% week-on-week, while textile spinning gained 7.7% and auto parts climbed 6.2%. By contrast, woollen fell 5.7%, jute slipped 3.2%, and OMCs declined 2.7%.
AIRLINK rose 19.7% and THALL gained 16.8% over the week, while UNITY dropped 8.3% and GADT fell 7.8%. Market turnover eased 7.2%, with daily volume averaging 606 million shares.
Corporate earnings and dividends
Earnings announcements shaped sentiment across major firms:
- Attock Petroleum Ltd. posted an 11% YoY decline in quarterly profit but announced a PKR 13/share dividend.
- Fauji Cement Co. reported 3.3 times higher quarterly profit on strong exports, declaring PKR 1.25/share payout.
- Lucky Cement recorded a 39% YoY earnings drop due to lower subsidiary income but declared PKR 4.0/share dividend.
- Meezan Bank saw a 9% YoY decline in NPAT but exceeded forecasts, announcing a PKR 7.0/share interim payout.
Rupee gains and economic updates
The rupee appreciated for the fourth week, closing at PKR 282.06 against the dollar, up 0.14%. Trade discussions with the U.S. advanced, while Washington formally designated the BLA as a terrorist organization.
In the auto sector, car and LCV sales rose 28% year-on-year, supported by last year’s low production base.
Analysts eye December target
Analysts expect the KSE-100 to continue its upward momentum, with a December 2025 target of 165,215 points. Fertilizer firms, banks, and energy companies are projected to lead gains as interest rates ease and cash flows improve. Key investor picks include OGDC, PPL, PSO, FFC, ENGROH, MCB, FCCL, KOHC, INDU, and SYS.
