Pakistan Stock Exchange (PSX) closed the week essentially unchanged, rising 408 points or 0.24% week-on-week to 167,086 on Friday, December 5, 2025. The move came amid political and financial signals, including the appointment of Field Marshal Asim Munir as Chief of Defense Forces and Saudi Arabia’s US$3.0 billion deposit extension, which helped ease mid-week volatility.
Market participation declined about 22% week-on-week as volatility persisted, with average daily turnover slipping to 863 million shares from 1.1 billion previously.
Externally, the trade deficit widened by 33% year-on-year to US$2.9 billion in November 2025, driven by a 5% YoY rise in imports and a 15% YoY drop in exports. Headline inflation stayed within expectations at 6.1% YoY for November 2025.
The index’s gains were led by the Cement and E&P sectors. The cement sector benefited from a 2% YoY uptick in local dispatches and LUCK’s announcement of a foreign expansion, while the E&P sector advanced as the LNG diversion plan progressed and offshore block auctions attracted Turkish investment.
State Bank of Pakistan (SBP) reserves rose by US$14 million to US$14.6 billion as of November 28, 2025.
Additional notable developments during the week included: 1) petroleum product sales down 10% YoY in November, 2) the FBR facing a PKR shortfall of 143 billion to meet November 2025 targets, 3) refinery upliftment rising 40% YoY in November, 4) wheat sowing in Punjab likely to exceed the target, and 5) business confidence improved to 22% per OICCI.
Invetment banks and corporations, along with refining and cement sectors, posted the strongest week performance, while Automobile parts & assemblers, Textile spinning, and Fertilizer lagged behind.
Net buying came from Individuals and Mutual Funds, totaling US$17.8 million and US$12.0 million respectively. Conversely, Insurance and Foreigners were net sellers, at US$32.4 million and US$9.7 million respectively.
Top performing stocks for the week included BNWM, PTC, SRVI, PIOC, and TRG, with laggards being THALL, AICL, HUMNL, HGFA, and FHAM.
AKD Securities expects the PSX momentum to persist, buoyed by a favorable IMF Executive Board outcome on the second review, minimal flood impact, and improved credit ratings from global agencies alongside falling fixed-income yields.
Investor sentiment is anticipated to improve further as foreign portfolio and direct investment inflows increase, driven by better relations with the United States and Saudi Arabia. The backdrop of few alternative investment options and attractive valuations in local equities also supports this outlook.
AKD Securities’ top picks include: MEBL, MCB, HBL, OGDC, PPL, PSO, ENGROH, LUCK, DGKC, FCCL, ILP, and INDU.
