The Pakistan Stock Exchange (PSX) maintained strong upward momentum in the week ending October 3, 2025. The KSE-100 Index closed at an all-time high of 168,990.06 points, marking a 4.1 percent weekly gain. JS Global Capital called it the best nine-month performance since 2009, supported by investor optimism and stronger macroeconomic indicators.
Market capitalization rose 3.2 percent to Rs19,660.88 billion (USD 69.9 billion). The BRIndex100 climbed 800.29 points to 17,712.26, while the BRIndex30 jumped 1,302.82 points to 52,343.51. Average daily trading volume stood at 1.48 billion shares, down 11.2 percent, though traded value surged 20.3 percent to Rs72.21 billion (USD 256.71 million).
Mutual funds and individual investors were the top buyers, with net purchases of USD 47.9 million and USD 34.3 million, respectively. Insurance firms, banks, and DFIs sold a combined USD 71.4 million, led by insurers at USD 30.3 million.
Banks, Fertilizers Lead the Rally
Banking stocks led the week’s rally, rising 9.3 percent, followed by fertilizers (7.7 percent), refineries (7.4 percent), and OMCs (5.3 percent). Tech and communication gained 4.1 percent, while minor declines hit the food (-0.4 percent) and textile (-2.7 percent) sectors.
Top gainers included Bank of Punjab, which surged 24.9 percent to Rs33.50, and Sazgar Engineering, which rose 15.1 percent to Rs1,980.06. Meezan Bank advanced 11.6 percent, and Fatima Fertilizer gained 13.4 percent. On the downside, Hum Network dropped 11.5 percent, and Nishat Power lost 10.6 percent.
Investor Confidence Strengthens
Investor confidence improved after Pakistan repaid a USD 500 million Eurobond, easing repayment concerns. Optimism also followed the Prime Minister’s meeting with the US President, seen as a boost to diplomatic and economic ties.
Inflation remained moderate, with the CPI for September at 5.6 percent year-on-year, bringing first-quarter FY26 inflation to 4.2 percent. However, the FBR missed its tax target by Rs200 billion, collecting Rs2.88 trillion. The trade deficit widened 46 percent YoY to USD 3.3 billion, reaching USD 9.3 billion for 1QFY26.
The government raised Rs 730 billion through T-bills, and SBP reserves edged up to USD 14.4 billion. The rupee appreciated 0.048 percent, closing at Rs281.26 per dollar.
AKD Securities expects the rally to continue, citing progress on the IMF review, improved credit ratings, and the likelihood of increased foreign inflows.