PSX likely to remain positive next week with earnings in focus

The Pakistan Stock Exchange (PSX), which has been on a long rally, is set to remain positive in the coming week as focus remains on corporate result announcements, analysts shared with Nukta.

The KSE-100 index extended its bullish momentum this week, reaching a record intraday high of 151,262 points before closing at 149,493 points, reflecting a 2% or 3,001 points increase. This was mainly due to strong buying interest because of the ongoing results season.

This was the ninth consecutive positive weekly closing for the index, with total gains of 25%.

The sectors that contributed positively were banks with 1,626 points, cement 783 points, pharma 214 points, leather & tanneries 116 points and auto assemblers 115 points.

Accordingly, average daily turnover stood at 790 million shares, compared to 606 million shares in the prior week.

On the macro front, Pakistan reported a current account deficit of $254 million in July, narrowing from a deficit of $348 million reported during the same month last year.

Foreign direct investment amounted to $208 million in July, registering a 7% growth.

The PKR appreciated marginally by 0.05% week-on-week, closing at 281.92 against the dollar.

According to an analyst from Arif Habib Ltd, with the ongoing results season, certain scrips are expected to stay in the spotlight as companies announce their earnings.

The KSE-100 index is currently trading at a forward price to equity ratio of 7.45x (2026) against its 10-year average of 8.0x, offering a compelling dividend yield of 6.8% versus the historical average of 6.5%.

According to an analyst from Spectrum Securities, the market will continue to be impacted by June earnings as observed recently, with preference for companies that are announcing dividends. In the majority of cases, companies with good earnings and high dividends saw their share prices increasing, he added.

The total leverage has increased to PKR 78 billion and the coming futures rollover week may witness relatively higher volatility in share prices where quantum of leverage is on the higher side, according to the analyst.

Downward support for the index is 146,000 points and 142,000 points while the previous week’s high near 151,000 is the first resistance level.

According to an analyst from AKD Securities, the market is expected to remain positive in the coming weeks, with further developments related to circular debt resolution along with upcoming corporate results expected to drive the market.

The KSE-100 is anticipated to sustain its upward trajectory, with a target of 165,215 points by December, primarily driven by strong earnings in fertilizers, sustained ROEs in banks, and improving cash flows of E&Ps and OMCs.