How to Buy and Sell Shares in Pakistan Stock Exchange (2025)

You’re staring at your bank account, wondering how to make your money grow.

You’ve heard about the Pakistan Stock Exchange (PSX), but it feels like a maze.

How do you even start? What if you lose everything?

I get it—investing can feel like jumping into a pool without knowing how to swim.

This guide cuts through the noise.

You’ll learn how to buy and sell shares on the PSX, plus strategies to stack the odds in your favor.

Why Truehost Cloud Is Your Investing Sidekick

But first, let’s talk about keeping your investing game sharp.

You’re researching stocks, tracking markets, maybe even running a side hustle to fund your trades.

You need a reliable online hub to stay organized—think a website or blog to track your portfolio or share your journey.

Truehost Cloud (https://truehost.cloud) is the cheapest, most reliable web hosting out there.

It’s like having a rock-solid broker for your online presence—fast, secure, and won’t drain your wallet.

Whether you’re documenting your PSX wins or building a brand, Truehost keeps your site up 24/7, so you can focus on crushing it in the market.

What Is the Pakistan Stock Exchange (PSX)?

The PSX is Pakistan’s main stock market.

It’s where you buy and sell shares of over 500 companies, from energy giants like Oil & Gas Development Company (OGDC) to cement kings like Lucky Cement.

Think of it as a supermarket for stocks—everything’s under one roof, and prices move based on supply, demand, and market vibes.

The KSE-100 Index tracks the top 100 companies, giving you a snapshot of how the market’s doing.

It’s grown 11.92% annually over the past decade, outpacing real estate and gold.

That’s not a guarantee, but it shows the potential if you play smart.

Step-by-Step: How to Buy and Sell Shares on PSX

Let’s break this down like a recipe. You don’t need a finance degree or a fat wallet—just follow these steps.

1. Open a Brokerage Account

You can’t trade directly on the PSX.

You need a broker, someone licensed to buy and sell shares for you. Think of them as your middleman. Here’s how to get started:

Pick a reputable broker: Look for names like Abbasi & Company, KASB KTrade, or JS Bank. Check their fees, app quality, and customer support.
Gather documents: You’ll need your CNIC, a bank account, and proof of income (like a salary slip or bank statement).
Open the account: Most brokers let you do this online. Fill out the Know Your Customer (KYC) form, submit docs, and you’re set.
Consider a Sahulat Account: If you’re a newbie or low on cash, this PSX account limits trades to PKR 1,000,000/day and keeps you away from risky leveraged products.

My buddy Ali wanted to dip his toes in the PSX but was scared of losing his savings. He started with a Sahulat Account through Abbasi & Company. With just PKR 5,000, he bought shares in a stable company like Engro. Six months later, he was up 15% and hooked. Small start, big confidence boost.

2. Fund Your Account

Once your account’s open, deposit cash.

Most brokers let you start with as little as PKR 5,000.

Link your bank account and transfer funds via online banking or a cheque.

Pro tip: Only invest what you can afford to lose.

This isn’t your rent money.

3. Research Stocks

Don’t throw darts at a board. Picking the right stocks is where the game’s won or lost. Here’s how to do it:

Check company financials: Look at earnings, debt, and growth. Websites like PSX Data Portal or Investify have this info.
Follow market trends: Read business news on Dawn or Business Recorder. Is the energy sector hot? Is cement slumping?
Start with blue-chip stocks: These are stable, big-name companies like Engro, Habib Bank, or Lucky Cement. They’re less likely to tank overnight.
Use demo accounts: Brokers like Abbasi & Company offer virtual trading to practice without risking real money.

4. Place Your Order

Ready to buy?

Log into your broker’s app or call them. You’ll need:

The company’s name or ticker (e.g., LUCK for Lucky Cement).
Number of shares.
Price (market price or a specific limit). Orders settle in T+2 (two business days), so your shares or cash show up then. Selling works the same way—just pick the shares you want to offload.

5. Monitor and Adjust

Investing isn’t set-it-and-forget-it.

Check your portfolio weekly.

Are your stocks climbing? Stalling?

Use apps like KTrade or StockIntel for live data and alerts.

If a company’s fundamentals change (say, bad earnings), consider selling.

Stay calm during market dips—panic selling is a rookie mistake.

Top Strategies to Win at PSX

Buying and selling is just mechanics. Strategy is where you make real money. Here are five proven approaches, chopped up for clarity.

1. Buy and Hold

This is the boring-but-effective strategy.

Pick solid companies, buy their shares, and hold for years. You’ll ride out market swings and cash in on dividends and growth.

Why it works: The KSE-100 has averaged 11.92% annual returns over a decade. Compounding does the heavy lifting.
How to do it: Invest in blue-chip stocks. Reinvest dividends to buy more shares.
Example: Sarah bought 100 shares of Engro in 2018 at PKR 300. By 2025, they’re worth PKR 450, plus she’s pocketed PKR 5,000 in dividends. Patience pays.

2. Don’t Bet It All on One Horse

Spread your money across sectors—energy, finance, tech, cement. If one tanks, the others can save you.

Why it works: Reduces risk. A bad day in oil won’t kill your portfolio if you’ve got banks or pharma.
How to do it: Aim for 3-5 stocks in different industries. ETFs like Global X MSCI Pakistan ETF are an easy way to diversify.
Pro tip: Don’t over-diversify. Too many stocks dilute your gains.

3. Technical Trading

This is for folks who like charts and patterns. You buy and sell based on price trends, not company fundamentals.

Why it works: A 2023 study found regression-based technical strategies beat the KSE-100’s 6.14% annual return with an 88% yearly gain.
Key tools: Use Moving Average Convergence Divergence (MACD) or Relative Strength Index (RSI) on platforms like StockIntel.
Warning: It’s high-risk. You need discipline and a stop-loss (e.g., sell if a stock drops 10%).

My cousin Zain got obsessed with technical trading. He used RSI to spot overbought stocks and made 20% in a month trading Fauji Fertilizer. But he lost big when he ignored his stop-loss. Set rules and stick to them.

4. Dividend Investing: Get Paid to Wait

Some companies pay dividends—cash payouts from profits. This is great for passive income.

Why it works: You earn even if the stock price doesn’t soar.
How to do it: Look for high-dividend stocks like Habib Bank or Engro. Check dividend yields on PSX’s website.
Example: If you buy 200 shares of a company paying PKR 5/share annually, that’s PKR 1,000/year in your pocket.

5. Shariah-Compliant Investing

Want to invest ethically?

PSX offers KMI-30 and PSX-KMI All Shares indices for Shariah-compliant stocks.

Why it works: These companies avoid alcohol, gambling, and high debt, which can mean stability.
How to do it: Pick stocks from the KMI-30, like Meezan Bank or Packages Limited.
Pro tip: Shariah compliance is certified by scholars, so you know it’s legit.

Common Mistakes to Avoid

I’ve seen people crash and burn. Here’s what to watch out for:

Chasing tips: Your uncle’s “hot stock” is probably a dud. Do your own research.
Panic selling: Markets dip. Don’t sell at a loss unless the company’s fundamentals are shot.
Overtrading: Every trade costs fees and taxes (15% CGT for filers). Trade smart, not often.
Ignoring risk: Never invest money you need in the next year. Stocks aren’t a savings account.

Tools and Resources to Level Up

You don’t need to fly blind. Use these to stay sharp:

PSX Data Portal: Official source for stock prices, ETFs, and reports.
Investify App: Live data, indicators, and a clean interface.
StockIntel: Deep analytics for serious traders (free trial, then paid).
Dawn Business: Free news to track market trends.
Broker Apps: KTrade, Abbasi, or JS Bank apps for trading and alerts.

Special Cases: Overseas Pakistanis and Foreign Investors

Not in Pakistan? No problem.

Overseas Pakistanis: Open a Roshan Digital Account with banks like Bank AL Habib. Pair it with a broker for PSX trading.
Foreign investors: Use a Special Convertible Rupee Account (SCRA) to buy stocks and repatriate profits.
Both get the same access as locals, just with extra paperwork.

Final Thoughts

The PSX isn’t a get-rich-quick scheme.

It’s a tool to build wealth if you’re patient and disciplined.

Start with PKR 5,000, pick a few solid stocks, and learn as you go.

Diversify, research, and don’t let emotions drive your trades.

The market rewards those who show up consistently.

Got a website to track your journey or share tips?

Truehost Cloud’s got your back—cheap, fast, and reliable hosting to keep you online.

Now go make your money work harder than you do.

Author

Kevin K.

View all posts