KEY POINTS
- KSE-100 opened with gains but ended the week nearly flat
- Investors cautious ahead of central bank’s monetary policy meeting
- Flood risks and energy prices dampened local sentiment
- PSX mirrored volatility in global equity and oil markets
ISLAMABAD: Stocks in Pakistan closed the week ended on Friday last almost unchanged as traders balanced corporate earnings optimism with worries about interest rates, flood disruptions, and global market volatility.
Market participants said early gains on strong earnings were offset by caution over the State Bank’s upcoming monetary policy, while international crude price swings and flood-related disruptions in agriculture and transport added to uncertainty.
According to Reuters, the foreign investors also kept the exposure light, with volumes tapering off by the week’s end.
Early strength loses ground
The market started with a 0.72 per cent increase in the KSE-100 Index, lifted by banking and auto shares.
PSX’s daily data summary showed volumes above the weekly average, while local brokers said strong earnings helped drive early momentum.
But the tone shifted midweek. By Tuesday, the index lost 0.45 per cent, with Business Recorder noting profit-taking in oil and property counters, while the crude oil’s swing unsettled investors.
Wednesday saw another 0.32 per cent dip, reflecting caution ahead of the State Bank’s monetary policy committee meeting.
Brief rebound, weak finish
Thursday brought some relief as the benchmark gained 0.28 per cent, supported by export-oriented and consumer sectors. Market watchers told Reuters the rebound was tied to stable remittance inflows and a softer rupee.
The week ended on a subdued note, reflected in a 0.21 per cent decline on Friday, pulling the index back to a near-flat level compared to the previous week.
Volumes thinned sharply, with Bloomberg reporting that “investors appear unwilling to add exposure without clearer policy signals.”
Global linkages and local risks
Foreign investor platforms offered a broader lens. Simply Wall St highlighted that Pakistani equities tracked “emerging market volatility” through the week, with energy costs and geopolitical tensions limiting upside.
At the same time, local concerns over floods and agriculture supply disruptions kept domestic investors cautious.
Outlook for the week ahead
Analysts say the PSX’s direction in the week starting Monday hinges on the central bank’s policy decision.
A Karachi brokerage analyst said trading is likely to stay “sideways with mild positive bias” if global conditions remain stable. Exporters and autos may benefit, but energy and real estate stocks face persistent pressure.
