KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish momentum during the outgoing shortened three-day trading week as easing geopolitical tensions in the Middle East, investor-friendly amendments to the FY27 Finance Bill and lower domestic fuel prices continued to strengthen investor confidence.
According to weekly market review, the benchmark KSE-100 Index gained 648.50 points, or 0.36 percent, during the week to settle at 179,571.27 points, compared with 178,922.77 points a week earlier.
The BRIndex100 advanced from 19,844.46 points to 19,930.11 points, registering a gain of 85.65 points during the week. Total turnover stood at 1.78 billion shares, translating into an average daily turnover of approximately 356.59 million shares.
Likewise, the BRIndex30 climbed from 72,590.00 points to 73,701.14 points, posting a gain of 1,111.14 points. Weekly turnover reached 1.18 billion shares, averaging around 235.10 million shares per trading day.
Analysts attributed the positive performance primarily to progress in US-Iran diplomatic negotiations after both countries agreed on a 60-day roadmap aimed at reaching a final agreement and ending military operations in Lebanon, easing concerns over regional instability and global energy supplies.
The report noted that international Brent crude oil prices softened to around US$76 per barrel, prompting the federal government to announce substantial reductions in domestic petroleum prices. Petrol prices were cut by Rs74 per litre, while high-speed diesel prices were reduced by Rs67 per litre.
At the same time, the government withdrew fuel subsidy schemes for bikers, farmers and transporters as geopolitical tensions eased, a move viewed positively by investors from a fiscal management perspective.
Investor sentiment also received a boost after the National Assembly approved the FY27 Federal Budget, incorporating a significant amendment to the Finance Bill that abolished the Super Tax for export-oriented companies whose exports account for at least 80 percent of total turnover. Market participants viewed the measure as supportive for corporate profitability and export-led industries.
On the monetary front, the government continued to manage its financing requirements through the domestic debt market. In the latest Treasury Bill auction, it raised Rs1.15 trillion, while yields declined by 39 to 115 basis points across various maturities, reflecting improving market expectations regarding interest rates.
Meanwhile, government borrowing from scheduled commercial banks reached Rs4.9 trillion during the period from July 2025 to June 12, compared with Rs3.7 trillion during the corresponding period of the previous fiscal year.
The market’s advance also translated into a notable increase in investor wealth. Total market capitalization rose 0.7 percent to Rs20.13 trillion, compared with Rs19.99 trillion a week earlier, representing an increase of nearly Rs139.95 billion. In dollar terms, market capitalization increased from USD71.86 billion to US$72.37 billion, also reflecting a 0.7 percent weekly gain.
Although the trading week comprised only three sessions, market participation remained healthy. Average daily turnover in the ready market stood at 807.97 million shares, down 29.6 percent from 1.15 billion shares recorded during the previous week. Average daily traded value declined 40.8 percent to Rs37.33 billion from Rs63.01 billion, while average daily value in dollar terms fell to USD134.19 million from USD226.44 million.
Trading activity remained concentrated in a handful of sectors. The Technology and Communication accounted for 16 percent, Power 11 percent, Oil Marketing Companies 9 percent, Investment Banks 6 percent and Food 5 percent of the total trade.
Sector-wise performance remained broadly positive. Textile Companies led the gains with an increase of 2.9 percent, followed by the Power sector (2.6 percent), Exploration and Production companies (1.9 percent), Cement (1.6 percent), Food and Personal Care (0.7 percent), Pharmaceuticals (0.7 percent), Chemicals (0.5 percent) and Engineering (0.4 percent). On the downside, Refineries declined 1.8 percent, followed by Technology and Communication (0.6 percent), Commercial Banks (0.3 percent), Fertilizer (0.3 percent), Oil Marketing Companies (0.3 percent) and Automobile Assemblers (0.1 percent).
Among individual stocks, K-Electric emerged as the top performer, gaining 7.4 percent to close at Rs8.75, followed by Service Industries (6.9 percent), Maple Leaf Cement (6.6 percent), Interloop (5.7 percent), Sui Northern Gas Pipelines (5.4 percent), Colgate-Palmolive Pakistan (4.2 percent) and Cherat Cement (4.2 percent).
On the losing side, SSOM fell 9.8 percent to Rs472.91, followed by Air Link Communication (4.0 percent), TPL REIT Fund I (3.9 percent), Bank Alfalah (3.8 percent), Allied Bank (3.8 percent), Gadoon Textile Mills (3.6 percent) and Pakistan Stock Exchange Limited (3.6 percent).
Analysts said the market continued to draw support from improving geopolitical conditions, easing energy prices and fiscal measures aimed at enhancing corporate profitability.
They added that investor focus in the coming weeks is likely to remain on the implementation of budgetary measures, macroeconomic indicators and further developments on the international geopolitical front.
Copyright Business Recorder, 2026
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