The KSE-100 Index is expected to maintain its upward momentum after the IMF approved a staff-level agreement for Pakistan’s second loan tranche. Political stability and declining fixed-income yields boosted investor confidence, lifting the index to 161,935 points on Friday. Foreign inflows and strong ties with the US and Saudi Arabia are likely to further support the market.
AKD Securities said the 27th Amendment approval eased political uncertainty and pushed equities higher. The index gained 3,751 points in two sessions despite ongoing tensions with Afghanistan affecting trade and early-week sentiment. However, market participation fell 13.6% week-on-week, with average daily traded volume dropping to 944 million shares.
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October remittances reached $3.4 billion, up 12% year-on-year, while Roshan Digital Account inflows totaled $250 million, rising 4.6% month-on-month. Auto sector sales jumped 38% YoY to 20,985 units, indicating strong domestic demand. State Bank reserves increased by $22 million week-on-week to $14.5 billion, while the rupee strengthened slightly against the US dollar.
Top-performing sectors included Jute, Woollen, Fertilizer, Textile Composite, and Leather, while Leasing, Textile Weaving, Vanaspati, Power, and Tobacco lagged. Mutual funds and companies were net buyers of $11.9 million and $2.2 million, respectively, whereas foreign investors exited $12.2 million. Leading companies were KTML (+29.3% WoW) and PIOC (+26.5%), while PABC (-5.6%) and SEARL (-5.4%) were the biggest losers.
Read more: KSE–100 soars on political, security, regional optimism
AKD Securities expects sentiment to improve further with potential foreign inflows and strengthened international relations. Limited alternative investments and attractive valuations, with KSE-100 trading at 7.6x earnings and offering a 6.8% dividend yield, support the rally. Analysts recommend monitoring policy updates, IMF approvals, and global market trends as the index continues to rise.