KARACHI: Pakistan’s stock market posted modest gains during the outgoing week, as improving investor sentiment amid growing prospects of negotiations to ease regional geopolitical tensions supported equities despite persistent macroeconomic pressures.
The benchmark KSE-100 Index opened the week at 165,596.06 points and closed at 167,844.25 points, registering an increase of 2,248.19 points on a week-on-week basis, as easing fears of further escalation in the Middle East encouraged selective buying across major sectors.
Meanwhile, the BRIndex100 opened the week at 18,190.70 points and closed at 18,414.34 points, registering an increase of 223.64 points during the period. Total turnover in the index stood at 1.60 billion shares for the week, translating into an average daily turnover of approximately 319.49 million shares.
Similarly, the BRIndex30 opened at 66,275.99 points and eventually settled at 67,360.06 points, posting a gain of 1,084.07 points on a week-on-week basis, reflecting improved participation in major blue-chip stocks. Total turnover in the index stood at 955.63 million shares during the week, averaging approximately 191.13 million shares per trading day.
Sentiment improved after indications emerged regarding potential negotiations aimed at reducing regional tensions, allowing investors to partially overlook underlying economic challenges.
Global oil markets also provided some relief during the week, with Brent crude prices declining to approximately $103 per barrel, down 6 percent week-on-week, easing concerns over imported inflation and external account pressures that had weighed heavily on investor confidence in previous weeks.
However, Pakistan’s external sector continued to face pressure. According to available macroeconomic data, the country’s current account reverted to a deficit of USD324 million in April 2026, primarily due to a widening trade imbalance driven by higher energy imports. On a cumulative basis, the current account deficit during 10 MFY26 widened to USD252 million, reflecting renewed external vulnerabilities despite previous improvements.
Meanwhile, Pakistan’s trade balance deteriorated further, with the monthly trade deficit exceeding USD4 billion in April 2026, marking the highest monthly deficit in 46 months. The widening gap was largely attributed to a 7 percent year-on-year increase in imports, while the country’s oil import bill surged to a 44-month high, intensifying pressure on the external account. Consequently, the cumulative trade deficit expanded to approximately USD32 billion during 10MFY26, representing a 20 percent year-on-year increase.
On the policy front, the International Monetary Fund (IMF) concluded its visit to Pakistan following discussions with authorities regarding fiscal consolidation, budgetary reforms, and macroeconomic management. During the talks, Pakistan reaffirmed its commitment to achieving a primary surplus target of 2percent of GDP in FY27, reflecting continued adherence to reform measures under the IMF programme.
Separately, Pakistan’s Real Effective Exchange Rate (REER) increased to a seven-year high of 105.8 in April 2026, signalling continued appreciation in the currency’s relative competitiveness index and indicating growing pressure on export competitiveness.
In the latest Treasury bill auction, the government raised Rs702 billion, significantly exceeding the target of Rs450 billion, reflecting robust participation despite prevailing market uncertainty. At the same time, yields increased by 9 to 86 basis points across different tenors, indicating investors’ preference for higher returns amid persistent macroeconomic concerns.
In another positive development, the State Bank of Pakistan’s foreign exchange reserves increased sharply by $1.2 billion week-on-week to USD17.1 billion, mainly reflecting the inflow received under the IMF programme, strengthening the country’s external liquidity position and supporting investor confidence.
Despite gains in the benchmark index, overall market participation remained mixed. According to the weekly PSX snapshot, total market capitalization increased by 1.2 percent to Rs18.62 trillion, compared to Rs18.39 trillion in the previous week. In dollar terms, market capitalization rose 1.3 percent to USD66.84 billion, up from USD66 billion.
However, activity in the ready market weakened considerably in terms of volumes. Average daily traded volume declined sharply by 39.9percent to 497.67 million shares, compared to 827.42 million shares recorded in the previous week, indicating cautious investor participation. In value terms, average daily turnover slipped by 5.3percent to Rs24.05 billion, compared to Rs25.41 billion a week earlier. Similarly, dollar-denominated turnover declined by 5.3percent to $86.34 million, down from USD91.19 million.
Sectoral performance remained mixed, though gains outnumbered losses. Oil Marketing Companies (OMCs) emerged as the top-performing sector, gaining 8.5percent, followed by Technology & Communication up 4.2 percent, Fertilizer rising 2.7 percent and the Banks increasing 2.4 percent.
Cement and Exploration & Production (E&Ps) sectors each gained 1.0 percent, while Power increased 0.2 percent and Pharmaceuticals remained flat during the week. On the losing side, Food and Chemical sectors declined 0.3 percent each, Autos slipped 0.7 percent, Textile Composite fell 1.0 percent, Engineering lost 1.3 percent, and Refinery sector recorded the steepest decline of 1.8 percent.
Trading concentration remained focused on a handful of sectors. OMCs led traded volumes with a 15 percent share, followed by Technology & Communication at 11percent, Investment Banks contributing 10 percent, Banks accounting for 8 percent, and Food sector representing 7 percent, while all remaining sectors collectively contributed 48 percent of total trading activity.
Among individual stocks, PTC emerged as the top gainer, surging 13.0 percent to close at Rs58.85, followed by SCBPL up 11.8percent to Rs64.83, SRVI gaining 8.7 percent to Rs2,008.27, PIOC rising 6.8percent to Rs270.92, UBL increasing 6.5 percent to Rs404.05, POWER advancing 6.0percent to Rs20.18, and AGP climbing 4.7 percent to Rs188.24.
On the downside, GADT emerged as the biggest loser, declining 17.9 percent to Rs293.21, followed by MEHT down 11.4 percent to Rs217.00, CNERGY falling 4.9 percent to Rs8.40, AICL losing 3.2 percent to Rs72.92, MTL decreasing 3.2 percent to Rs546.44, GLAXO slipping 3.1percent to Rs335.30, and PAKT declining 2.7 percent to Rs1,337.34.
Overall, the week reflected cautious optimism in Pakistan’s equity market, where improving geopolitical sentiment and strengthening foreign exchange reserves supported gains, although widening trade and current account deficits, elevated imports, and macroeconomic vulnerabilities continued to temper investor enthusiasm.
Copyright Business Recorder, 2026