Pakistan Equity Market Posts 1.5% Weekly Decline amid Weak Investor Sentiment and Rising Oil Prices

ISLAMABAD: Pakistan’s benchmark KSE-100 index closed 1.5% lower for the week on Friday, as subdued investor activity persisted amid uncertainty over US‑Iran relations and elevated oil prices.

Investor participation waned throughout the week, with average daily trading volume reaching 525 million shares and value amounting to Rs18.7 billion ($67.5 million). The market finished at 168,155.49 points.

Karachi-based Topline Securities noted that the weekly decline was mainly driven by subdued investor interest, the lack of positive developments in US‑Iran relations, and higher oil prices.

Key economic indicators released during the week also influenced market sentiment.

Pakistan’s consumer price inflation eased to 10.26% in September 2026, down from 11.15% in August, yet it remained well above the 5.76% recorded a year earlier.

Meanwhile, the trade deficit expanded to $3.6 billion in September 2026, a 6% rise year‑on‑year and an 8% increase month‑on‑month, underscoring ongoing pressure on the external account.

The review also reported that Treasury bill auction yields rose by 49–75 basis points across various tenors during the week, reflecting shifting expectations regarding interest rates and liquidity.

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