Karachi, September 6, 2025 – The Pakistan Stock Exchange (PSX) ended the week on a strong note, as the benchmark KSE-100 index recorded a robust 3.8% week-on-week (WoW) gain.
This performance came in the backdrop of devastating floods that continue to impact the national economy, yet investor confidence remained resilient amid ongoing corporate results season.
According to a report by Arif Habib Limited, the KSE-100 index closed at 154,277 points, gaining 5,659 points over the week. Analysts attributed the surge to heavy buying activity, supported by encouraging earnings announcements across key sectors.
Macroeconomic data also provided some comfort to investors. Consumer Price Index (CPI) inflation slowed to 3.0% in August 2025, compared to 4.1% in July, easing market concerns about further monetary tightening. Meanwhile, foreign exchange reserves improved slightly, with overall holdings reaching USD 19.66 billion, while the Pakistani rupee posted a marginal appreciation of 0.04% against the dollar, settling at 281.65.
Sector-wise performance reflected a mixed yet optimistic picture. Fertilizer offtake saw a significant rebound in August, with urea sales jumping 46% year-on-year (YoY) and DAP rising 40% YoY, though cumulative volumes remained below last year’s levels. Petroleum sales grew 7% YoY, aided by reduced motor spirit (MS) prices and stronger transport demand following school reopenings. Cement dispatches also surged 12.5% YoY to 3.8 million tons, supported by reconstruction activities in flood-affected regions and higher exports from the southern region.
The financial sector witnessed healthy participation in the T-bill auction on September 3, with PKR 515.2 billion raised against a target of PKR 400 billion. Yields eased slightly in the one-month tenor, indicating some stability in the short-term money market.
Despite the flood-induced economic strain, optimism in equities remained intact, as market participants focused on earnings resilience and attractive valuations. The KSE-100 index currently trades at a forward price-to-earnings ratio (PER) of 7.8x for 2026, compared with its 15-year average of 8.59x. Moreover, the market continues to offer an appealing dividend yield of around 6.0%, broadly in line with historical averages.
Looking ahead, analysts expect selected scrips—including OGDC, PPL, MEBL, NBP, MCB, FFC, LUCK, PSO, and HUBC—to stay in focus. While the flooding situation remains a risk factor for the broader economy, the KSE-100 index has shown remarkable resilience, highlighting investor confidence in Pakistan’s long-term equity prospects.