Key Takeaways
- • PSX benchmark index closed nearly flat for the week ended November 2025, gaining 167 points (0.1% week-over-week) to settle at 162,103 points, reflecting persistent market volatility driven by geopolitical and macroeconomic headwinds.
- • Market participation strengthened significantly, with average daily traded volume surging 35.7% week-over-week to 1.3 billion shares from 0.9 billion shares, indicating increased investor engagement despite sentiment challenges.
- • Pakistan's current account deficit widened to US$112 million in October 2025 versus a US$296 million surplus in the prior year, while IT exports reached a record US$386 million (up 17% year-over-year), signaling sectoral strength amid broader macro pressures.
- • State Bank of Pakistan foreign exchange reserves increased US$27 million to US$14.6 billion as of mid-November 2025, supported by IMF Executive Board approval of the second review and improving international relations with the US and Saudi Arabia.
- • AKD Securities projects continued KSE-100 momentum, citing attractive valuations at 7.6x earnings with 6.8% dividend yield, improved credit ratings, and expected foreign portfolio and direct investment inflows, with top picks including MEBL, MCB, HBL, OGDC, and PPL.
Summary
Pakistan's stock market remained volatile but stable during the week ended November 2025, with the PSX benchmark index closing nearly flat despite investor skepticism and macroeconomic crosscurrents. The KSE-100 index advanced 167 points to 162,103, representing a marginal 0.1% weekly gain. The modest upside came amid investor concerns over the ongoing Pakistan-Afghanistan peace talks deadlock and an IMF Governance and Corruption Diagnostic Assessment Report that highlighted systemic corruption issues across governmental levels.
Market structure showed meaningful improvement despite headline volatility. Average daily traded volume increased 35.7% week-over-week to 1.3 billion shares, up from 0.9 billion shares in the prior week, signaling strengthened participation and technical depth. This liquidity expansion suggests institutional and retail investors are actively positioning despite near-term sentiment pressures, a positive indicator for sustained market function.
Macroeconomic data presented a mixed picture. Pakistan's current account deteriorated significantly, posting a US$112 million deficit in October 2025 compared to a US$296 million surplus in October 2024—a US$408 million swing that reflects external pressures. However, offsetting this weakness, Pakistan's IT sector demonstrated robust growth, with October 2025 exports reaching a record US$386 million, up 17% year-over-year. State Bank of Pakistan's foreign exchange reserves edged higher by US$27 million to US$14.6 billion as of November 14, 2025, supported by IMF Executive Board approval of the institution's second review.
AKD Securities maintained a constructive medium-term outlook for equities, citing improved macroeconomic catalysts including successful IMF program reviews, minimal flood-related economic disruption, and enhanced sovereign credit ratings. The firm projects that improved US and Saudi Arabia relations will unlock foreign portfolio and direct investment flows. With the KSE-100 trading at an attractive 7.6x forward earnings multiple and offering a 6.8% dividend yield, AKD identified limited alternative investment vehicles domestically, supporting relative valuation support. Top stock recommendations include MEBL, MCB, HBL, OGDC, PPL, PSO, FFC, ENGROH, LUCK, DGKC, FCCL, and INDU, reflecting broad-based conviction across financial services, energy, and industrials sectors.
Market structure showed meaningful improvement despite headline volatility. Average daily traded volume increased 35.7% week-over-week to 1.3 billion shares, up from 0.9 billion shares in the prior week, signaling strengthened participation and technical depth. This liquidity expansion suggests institutional and retail investors are actively positioning despite near-term sentiment pressures, a positive indicator for sustained market function.
Macroeconomic data presented a mixed picture. Pakistan's current account deteriorated significantly, posting a US$112 million deficit in October 2025 compared to a US$296 million surplus in October 2024—a US$408 million swing that reflects external pressures. However, offsetting this weakness, Pakistan's IT sector demonstrated robust growth, with October 2025 exports reaching a record US$386 million, up 17% year-over-year. State Bank of Pakistan's foreign exchange reserves edged higher by US$27 million to US$14.6 billion as of November 14, 2025, supported by IMF Executive Board approval of the institution's second review.
AKD Securities maintained a constructive medium-term outlook for equities, citing improved macroeconomic catalysts including successful IMF program reviews, minimal flood-related economic disruption, and enhanced sovereign credit ratings. The firm projects that improved US and Saudi Arabia relations will unlock foreign portfolio and direct investment flows. With the KSE-100 trading at an attractive 7.6x forward earnings multiple and offering a 6.8% dividend yield, AKD identified limited alternative investment vehicles domestically, supporting relative valuation support. Top stock recommendations include MEBL, MCB, HBL, OGDC, PPL, PSO, FFC, ENGROH, LUCK, DGKC, FCCL, and INDU, reflecting broad-based conviction across financial services, energy, and industrials sectors.
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