The Pakistan Stock Exchange (PSX) is expected to maintain its positive trajectory in the coming weeks, supported by upcoming corporate results and developments surrounding the circular debt issue, according to a report released by AKD Securities.
During the outgoing week, the KSE-100 Index remained volatile but ultimately gained 1,109 points, or 0.76 percent week-on-week, to close at 146,492 points on Friday. Investor confidence was lifted by strong corporate earnings, optimism about the forthcoming industrial policy, and reports that the government plans to phase out the super tax over the next five years. Adding to the upbeat sentiment, Moody’s upgraded Pakistan’s sovereign rating from Caa2 to Caa1.
However, delays in circular debt settlements weighed on the exploration and production (E&P) and oil marketing company (OMC) sectors, dragging the index lower by 214 points and 159 points, respectively. Trading activity slowed as average weekly volumes fell 7.2 percent to 606 million shares compared to 653 million in the previous week.
Sector performance was mixed, with leasing companies, textile spinning, and auto parts outperforming, posting gains of 13.5 percent, 7.7 percent, and 6.2 percent, respectively. In contrast, woollen, jute, and OMCs recorded declines. On the corporate front, AIRLINK, THALL, and YOUW emerged among the top gainers, while UNITY, GADT, and PPL were notable losers.
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In terms of flows, banks and other organizations recorded net selling worth $9.8 million and $4.2 million, while mutual funds absorbed much of the pressure with net purchases of $15.3 million.
Looking ahead, analysts expect the KSE-100 Index to continue its upward trend, potentially reaching 165,215 points by December 2025. Earnings strength in fertilizers, healthy returns in banks, and improving cash flows for E&Ps and OMCs—supported by falling interest rates and economic stability—are projected to underpin market momentum.
