International funds would divert their liquidity into shopping for Pakistan’s shares. This may merely will increase costs of shares and be worthwhile for many who already maintain shares. PHOTO: FILE
KARACHI:
The Pakistan Inventory Alternate (PSX) wrapped up the outgoing week on a agency footing as a late-session rally helped the benchmark KSE-100 index submit modest weekly features, snapping days of subdued buying and selling amid geopolitical considerations.
Improved liquidity circumstances, easing regional tensions and rising expectations of a coverage fee minimize within the upcoming financial coverage announcement lifted investor sentiment on Friday, permitting the index to shut the week above the 185,000 stage regardless of lingering macro and exterior headwinds.
On a day-on-day foundation, the PSX commenced the week on a destructive be aware because the KSE-100 prolonged losses, closing at 182,384, down 2,026 factors (-1.10%). Consolidation continued on Tuesday as effectively, with the index closing at 183,951, up 1,567 factors (+0.86%).
On Wednesday, the consolidation section endured, the place the market closed at 182,570, down 1,382 factors (-0.75%). The PSX witnessed one other destructive session on Thursday because the index ended the day at 181,456, down 1,114 factors (-0.61%). The bourse closed the week on a extremely bullish be aware, when it settled at 185,099, up 3,643 factors (+2.01%).
Arif Habib Ltd (AHL), in its weekly overview, stated the KSE-100 index remained largely vary certain over the week, closing barely up at 185,099 with a achieve of 689 factors (+0.4% week-on-week). Market sentiment stayed subdued for a lot of the week as escalating geopolitical uncertainty saved traders cautious. Nonetheless, the bourse staged a late rally on Friday, pushed by recent liquidity, easing geopolitical tensions and strengthened expectations of a coverage fee minimize.
The federal government, via the Pakistan Funding Bond (PIB) public sale, raised Rs488 billion in opposition to the goal of Rs450 billion. Reduce-off yields dropped by 59-70 foundation factors throughout all tenors.
Auto gross sales (automobiles, mild industrial autos, vans and jeeps) declined by 14% month-on-month (MoM) to 13.3k items throughout Dec’25. Nonetheless, on a year-on-year (YoY) foundation, they elevated by 35%. Cumulatively, in 1HFY26, the auto gross sales rose by 46% YoY to 88k items, talked about AHL.
Oil manufacturing elevated 1.1% WoW to 65,444 barrels per day, led by greater output at northern fields amid diminished curtailment. Gasoline manufacturing rose to three,012 million cubic toes per day, the very best since mid-Mar’25, pushed by elevated provide to fertiliser and energy sectors and diminished northern curtailment.
Costs of petrol and high-speed diesel remained regular at Rs253.17 per litre and Rs257.08/litre, respectively. The State Financial institution-held overseas reserves rose by $16 million to $16.1 billion. In the meantime, the Pakistani rupee appreciated barely in opposition to the US greenback, strengthening 0.03% WoW to shut at Rs279.95/$, added AHL.
Syed Danyal Hussain of JS World famous that the KSE-100 index recovered strongly within the ultimate session of the week after remaining below stress earlier amid heightened regional geopolitical tensions, closing at 185,099 factors (+0.4% WoW). On the macro entrance, large-scale manufacturing recorded its eighth consecutive YoY progress, rising 10.4% in Nov’25, lifting 5MFY26 progress to six%. On the exterior financing aspect, Pakistan requested the UAE to roll over $2.5 billion deposits for an extra two years, whereas in search of a close to 50% discount within the financing fee on an impressive $450 million mortgage.
In the meantime, the World Financial institution, in its newest evaluation, projected Pakistan’s GDP progress at 3% for FY26. In different information, Hussain talked about, financial institution lending to the personal sector slumped 79% YoY to Rs395 billion in 1HFY26. In distinction, authorities borrowing remained robust, with the most recent PIB public sale elevating Rs546 billion in opposition to the goal of Rs450 billion, whereas cut-off yields declined by 59 to 70 foundation factors throughout totally different tenors.
Moreover, the federal government diminished revenue charges on Nationwide Financial savings Schemes by 23 to 50 foundation factors throughout numerous devices. Auto numbers but once more recorded robust YoY progress, with four-wheeler volumes displaying a progress of 31% in Dec’25, taking 1HFY26 progress to 45%, stated Hussain.
