Karachi, October 25, 2025 – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) ended the week on a negative note, losing 502 points to close at 163,304 points for the week ending October 24, 2025.
The market remained largely range-bound as investors displayed mixed sentiment throughout the week.
According to a report by Arif Habib Limited, the week began positively, supported by easing geopolitical tensions and favorable macroeconomic data. The announcement of a current account surplus of USD 110 million in September 2025, compared to a USD 52 million deficit in the same month last year, initially boosted investor confidence. However, profit-taking later in the week erased most of the gains.
Macroeconomic indicators presented a mixed picture. The Real Effective Exchange Rate (REER) rose to 101.73 in September, while net FDI inflows reached USD 186 million, showing slight improvement month-on-month. However, overall inflows for the first quarter of FY26 dropped 34% year-on-year to USD 569 million. Oil and gas production also saw declines of 6.9% and 3.1% respectively, while power generation in September increased marginally by 0.8% year-on-year to 12,592 GWh.
Meanwhile, State Bank of Pakistan’s foreign reserves climbed to USD 14.45 billion, and the Pakistani Rupee remained largely stable, closing at 281.02 against the USD.
Looking ahead, the Monetary Policy Committee (MPC) is set to meet on October 27, 2025, with expectations that the policy rate will remain unchanged. Analysts anticipate selective stock activity as earnings season continues, while any development on the IMF Executive Board’s review could influence market direction. The KSE-100 Index currently trades at a price-to-earnings ratio (PER) of 8.58x, offering a dividend yield of 5.5%, which remains attractive compared to historical averages.