PSX to Maintain Upward Trend Amid IMF Review and Investor Optimism

The Pakistan Stock Exchange (PSX) is expected to maintain its upward momentum, driven by a positive IMF review, improved credit ratings, and renewed foreign investment interest, according to a report by AKD Securities. The brokerage highlighted that easing fixed income yields and strengthened relations with the US and Saudi Arabia are creating a favorable market outlook.

Following the staff-level agreement with the International Monetary Fund (IMF) on its second review, Pakistan’s financial markets have shown renewed optimism. The PSX’s performance, despite minor fluctuations, reflects growing confidence in the country’s macroeconomic stability.

Market Performance

During the week ending October 24, 2025, the KSE-100 Index slipped by 502 points (-0.3% WoW) to close at 163,304 points, with trading volumes dropping 17% week-on-week. Despite this, analysts predict sustained growth fueled by macroeconomic improvements and investor optimism.

“The combination of falling yields, strong remittance inflows, and improved investor sentiment signals sustained market resilience,” said an AKD Securities research note.

The report added that IT exports surged 25% YoY to $366 million, marking the highest monthly record, while the current account posted a $110 million surplus in September. Meanwhile, SBP reserves rose to $14.5 billion, and the rupee appreciated slightly to Rs. 281 per USD.

Sector & Company Performance

Top-performing sectors included Jute (+5.3%), Leather & Tanneries (+5.2%), and Tobacco (+4.5%), while Power Generation, Refinery, and Transport sectors saw declines. Leading gainers were PSX (+18.9%), AIRLINK (+12.2%), and PSEL (+10.8%), whereas K-Electric and PKGP were major laggards.

Broader Economic Developments

The week also saw progress in Pakistan-Vietnam trade targets ($3 billion), PIA privatization, and Panda Bonds issuance plans. Moreover, foreign investors repatriated $752 million in Q1, reflecting increased cross-border capital activity.

“With limited alternative investment avenues and attractive valuations, Pakistani equities remain a compelling choice,” AKD Securities concluded.