KARACHI:
Overall market participation was robust, with 1.066 billion shares traded worth Rs49 billion. KEL led volumes at 195.8 million shares.
The Pakistan Stock Exchange extended its losing streak into the outgoing week, with the KSE-100 Index sliding 1.3% week-on-week to settle at 175,329 points as renewed US-Iran tensions and elevated crude oil prices kept investors cautious.
The index remained under pressure despite intermittent support from corporate earnings and local buying, declining in the first half of the week before recovering modestly over the final two sessions.
On a day-on-day basis, the PSX opened the week with a consolidation session as the KSE-100 declined 721 points (-0.41%) to close at 176,976. On Tuesday, the bourse kicked off September with investors on tenterhooks; the index fell 508.69 points, or 0.29%, to settle at 176,466.99.
Geopolitical concerns weighed on sentiment on Wednesday, with the PSX declining 1,690 points (-0.96%) to close at 174,777. Thursday was flattish, with the index gaining 153 points (+0.09%) to 174,930, while Friday delivered modest gains as the KSE-100 rose 399 points (+0.23%) to end the week at 175,329.
Arif Habib Limited (AHL) noted that the KSE-100 consolidated amid renewed US-Iran tensions, supported by corporate earnings that partly offset a cautious investor stance. The index closed at 175,329 points, down 1.3% week-on-week.
Among major economic developments, AHL noted that the Federal Board of Revenue (FBR) collected Rs902 billion in August 2026 (+2% YoY), missing the Rs930 billion target by Rs28 billion, while 2MFY27 collections reached Rs1,722 billion (+5% YoY), Rs12 billion above the Rs1,710 billion target.
The Consumer Price Index (CPI) for August came in at 11.15% YoY, up from 9.2% in July. Fitch Ratings assigned Pakistan’s proposed US dollar bond and MTN programme a ‘B’ rating with an ‘RR4’ recovery rating, signaling average recovery prospects.
Oil marketing companies’ (OMC) sales declined 3% YoY to 1.26 million tons in August 2026, driven by high-speed diesel (+32%) and motor spirit (-9%) demand amid higher fuel prices, with month-on-month sales falling 16%. Refinery supplies surged 32.2% YoY to 964k tons in August, driven by strong MS, HSD, and furnace oil demand, but declined 15.7% MoM due to lower OMC purchases amid higher domestic prices. For 2MFY27, refinery sales rose 40.2% YoY to 2,107k tons.
Naya Nazimabad Apartments REIT saw exceptional 8x oversubscription, hitting the upper price ceiling of Rs23 and raising Rs1 billion in equity, according to AHL. T-bill auction yields declined across most tenors, with the government raising Rs680.1 billion against an Rs800 billion target, mainly through the three-month tenor at Rs387.8 billion.
Pakistan posted a $3.2 billion trade deficit in August, with exports up 3.8% YoY to $2.5 billion and imports up 7.4% YoY to $5.7 billion. Urea offtake declined 14% YoY in August to 701k tons, with Engro Fertilisers the only player posting growth (+18% YoY), while 8MCY26 offtake remained broadly flat at 3.79 million tons. Cement dispatches rose 3% YoY in 2MFY27, despite August sales declining 1% YoY to 4.04 million tons amid softer domestic demand, per AHL.
Topline Securities, in its weekly review, noted the KSE-100 continued its downward momentum, dipping 1% WoW primarily driven by escalating US-Iran tensions and higher crude oil prices. Major developments included Pakistan’s August 2026 CPI at 11.1% versus July’s 9.2%, an August trade deficit of $3.2 billion (up 10% YoY but down 20% MoM), and the government raising $3 billion through a dual-tranche Eurobond for five- and 10-year tenors at 7.5% and 7.9%, respectively.
Individuals and local companies were largely buyers, purchasing net equities worth $15 million and $5.7 million, respectively, as of Friday’s close, while mutual funds and foreign corporates were major sellers, offloading net equities worth $15 million and $10.2 million, respectively. Average daily traded volume and value stood at 767 million shares and Rs33 billion, respectively, according to Topline.
