KEY POINTS
- Equities closed the week on a firm note, holding close to record levels.
- Trading remained selective, centred on index-heavy and fundamentally strong stocks.
- Softer volumes signalled consolidation after a strong rally, shaping a cautious near-term outlook.
ISLAMABAD: Pakistan’s stock market ended the last week on a steady footing, with equities holding near record highs as investors balanced profit-taking with selective buying.
Market sentiment reflected a year-end pause rather than a reversal, as participants focused on sustaining gains amid macroeconomic and policy uncertainties.
Market performance
The benchmark KSE-100 Index closed the week at 172,400.73 points, posting a 0.58% week-on-week gain.
During the week, the index dipped to an intra-week low of 170,830.22 points before rallying 1,570.51 points, or 0.92%, on the final session to end near all-time highs.
Analysts noted that institutional support at lower levels helped cushion the market against aggressive profit-taking.
Trading activity
Average daily traded volumes softened compared to the previous week, reflecting a cautious stance among retail investors and a shortened trading week.
Local brokerages commented that lower turnover was consistent with consolidation following an extended rally, and that buying interest remained concentrated in index-heavy and blue-chip stocks.
Sectoral trends
Banking, oil and gas exploration, and cement sectors provided key support, buoyed by earnings resilience and valuation comfort.
In contrast, consumer goods and technology-related stocks saw selective selling as investors booked profits. Sector rotation was described by analysts as a sign of a healthy, maturing rally.
Regional and international context
Markets in the region showed mixed trends. India’s benchmark index ended the week modestly lower amid geopolitical and macro concerns, while China’s Shanghai Composite gained on policy stimulus expectations.
Internationally, emerging markets broadly benefited from a stabilising US dollar and easing global interest rate pressures, which supported investor appetite for higher-yielding equities.
Analysts highlighted that Pakistan’s market performance mirrored these regional trends, gaining from both domestic reforms and improving investor confidence in emerging Asia.
Daily movement at a glance
The week began with sideways trading amid profit-taking.
Mid-week weakness briefly pushed the index below 171,000 points, but a strong rebound on the final trading day restored gains above 172,000 points, accounting for most of the week’s net increase.
Outlook
Local analysts expect the market to remain range-bound in the near term, with direction dependent on macroeconomic data, corporate earnings results, and policy clarity.
International market observers also noted that Pakistan equities, benefiting from improving fiscal and reform measures, sustained record-level performance, will require consistent liquidity, broader sector participation, and stability in global markets.
