Overall market participation was robust, with 1,066 million shares traded totaling Rs. 49 billion. KEL topped the volume chart with 195.8 million shares. Photo: Express
Renewed geopolitical instability across the Middle East and escalating global crude oil prices pushed the Pakistan Stock Exchange (PSX) into negative territory this week. The benchmark KSE-100 Index shed 2.75%, falling 4,817 points week-on-week to close at 170,512.
On Monday, the KSE-100 Index extended its losses, closing at 173,636, down 1,693 points (-0.97%), after trading between an intraday high of 175,353 and a low of 173,603.
The market fell further on Tuesday, plunging as much as 2,145 points intraday before recovering some losses to close at 172,642, down 993 points (-0.57%).
PSX experienced a negative session on Wednesday, with the KSE-100 Index declining 699 points (-0.40% day-on-day) to close at 171,944.
Selling pressure continued on Thursday as the KSE-100 Index dropped 3,079 points (-1.79% day-on-day) to close at 168,865.
On Friday, the market initially stumbled after Houthi strikes on Saudi energy infrastructure drove up oil prices and dampened investor sentiment. However, the index recovered by 0.98% to close at 170,512 following reports of diplomatic talks between Gulf nations and Iran that eased crude prices.
Arif Habib Limited (AHL) noted that the KSE-100 came under pressure this week amid renewed US-Iran tensions and higher oil prices, with the index falling from 175,329 points last week to 170,512 points, a 2.75% week-on-week decline. Investor sentiment remained cautious as geopolitical uncertainty and concerns over higher energy prices continued to weigh on market activity.
Oil production improved 1.8% week-on-week to 68.4k barrels of oil per day, mainly due to higher flows from Adhi, KPD, and Sharf, while gas production increased 2.0% week-on-week to 3,088 million cubic feet per day, driven by higher production from Mari, Uch, and a revival in production from Shewa at 68 mmcfd. AHL further explained that remittances from overseas Pakistanis grew by 17% year-on-year to $3.7 billion during August 2026 compared to $3.1 billion during August 2025. On a month-on-month basis, remittances increased by 1%. In the first two months of fiscal year 2027, remittances increased by 15% year-on-year to $7.3 billion.
Cement sector profits for fiscal year 2026 grew by 13% year-on-year to Rs138 billion, supported by a 7% increase in dispatches to 50.5 million tonnes, higher utilization of approximately 60%, and a 33% decline in finance costs. The International Monetary Fund (IMF) is expected to visit Pakistan on September 23, 2026, to review progress under the $7 billion Extended Fund Facility (EFF) and $1.4 billion Resilience and Sustainability Facility (RSF) programmes. The mission is likely to stay until early October and conduct the fourth EFF and third RSF reviews for the year ended June 2026.
Total liquid foreign exchange reserves increased 5.3% week-on-week to $23.7 billion, with State Bank of Pakistan (SBP) reserves up 7.0% to $18.3 billion, while banks’ reserves remained broadly stable at $5.4 billion. Import cover improved to 2.74 months from 2.56 months, as per AHL.
The Naya Nazimabad Apartments Real Estate Investment Trust (REIT) experienced significant demand, with the book building oversubscribed eight times and the public offering 4.3 times oversubscribed. The REIT raised Rs1.01 billion against the total demand of Rs5.6 billion.
Under the new daily pricing mechanism, petroleum prices increased: Motor Spirit (MS) up Rs21.8 per litre to Rs370.8 per litre, High Speed Diesel (HSD) up Rs23.72 per litre to Rs398.4 per litre, tracking the seven-day average of Platts prices. Petroleum Levy (PL), Inland Freight Equalisation Margin (IFEM), and Oil Marketing Company (OMC) margins remain unchanged, said AHL.
Syed Danyal Hussain of JS Global observed that the KSE-100 remained under pressure throughout the week, falling by 4,817 points week-on-week, as renewed geopolitical tensions between Iran and the US continued to weigh on investor sentiment. Meanwhile, fighting between the Iran-backed Houthis and Saudi Arabia intensified, with the group making significant advances around the Bab-el-Mandeb Strait, raising concerns over regional stability and global trade disruptions and pushing Brent crude back above $100 per barrel. Domestically, fuel prices continued to climb, with petrol rising by Rs25 per litre week-on-week to Rs370.8 per litre while HSD prices rose by Rs20 per litre to Rs398.04 per litre. The government has decided to reduce the refinery crack margin for HSD to $30 per barrel from $41 per barrel during wartime conditions. Meanwhile, the IMF’s fourth review is expected to start next week. The draft Auto Policy 2026-31 has been finalized following a stringent review by government committees, with a heavy focus on electric vehicle (EV) adoption. However, IMF consultation, expected in October, and subsequent Cabinet approval remain pending.