KARACHI: The Pakistan Stock Exchange (PSX) remained under pressure for a third consecutive week ended July 24, 2026.
Escalating geopolitical tensions in the Middle East, particularly the Houthis’ announcement of a blockade in the Red Sea, dampened investor confidence and sent international Brent crude oil prices above US$100 per barrel for the first time in nearly two months, triggering broad-based selling across the market.
The benchmark KSE-100 Index declined by 2.7 percent on a week-on-week basis, losing 4,781.60 points to close at 171,021.20 points compared with the previous week’s close of 175,802.80 points. The sustained decline reflected persistent investor caution amid rising geopolitical risks, higher global energy prices and concerns over their implications for Pakistan’s inflation and external account.
The broader market also witnessed a notable erosion in value during the week. Total market capitalization at the Pakistan Stock Exchange declined by 2.6 percent to Rs19.278 trillion from Rs19.790 trillion recorded a week earlier, representing a loss of approximately Rs512.03 billion. In US dollar terms, market capitalization also fell 2.6 percent to US$69.38 billion from US$71.20 billion.
Business Recorder’s benchmark indices also remained under pressure throughout the week. The BRIndex100 opened at 19,299.72 points and closed at 18,716.85 points, registering a decline of 582.87 points.
The index recorded a weekly turnover of 3.012 billion shares, translating into an average daily turnover of approximately 602.40 million shares.
Similarly, the BRIndex30 retreated from 69,867.09 points to 67,530.25 points, shedding 2,336.84 points during the week. Total turnover in the index stood at 1.899 billion shares, averaging around 379.73 million shares per trading day.
Despite the weak equity performance, several macroeconomic developments remained supportive. S&P upgraded Pakistan’s sovereign credit rating to ‘B’ from ‘B-’, citing improving institutional stability and continued implementation of IMF-supported economic reforms.
During the week, the Oil and Gas Regulatory Authority (OGRA) shifted to a daily petroleum pricing mechanism. As a result, cumulative increases in petroleum prices reached Rs15.37 per litre (4.9 percent) for Motor Spirit and Rs24.31 per litre (6.9 percent) for High-Speed Diesel over the course of the week.
Pakistan also secured US$16.2 billion in external financing during FY26, while reports suggested the government was pursuing an additional US$10 billion support package from the United States to strengthen foreign exchange reserves and support macroeconomic stability.
Meanwhile, the State Bank of Pakistan’s foreign exchange reserves remained broadly stable at US$17.3 billion.
In the latest Treasury Bill auction, the government raised Rs768 billion against a target of Rs800 billion, while cut-off yields increased by as much as 50 basis points on longer-tenor papers, indicating cautious market expectations regarding interest rates.
Market liquidity weakened during the week as investors adopted a cautious stance. Average daily turnover on the ready market declined 5.9 percent to 696.04 million shares from 739.94 million shares a week earlier.
Average daily traded value dropped 19.2 percent to Rs27.74 billion from Rs34.34 billion, while average daily dollar value also fell 19.2 percent to US$99.81 million compared with US$123.53 million in the previous week.
Sector-wise trading activity remained heavily concentrated in refinery stocks, which accounted for 25 percent of total market volume during the week.
Investment Banks contributed 15 percent, followed by Technology & Communication with 9 percent, while Cement and Property sectors each accounted for 7 percent of total traded volume. The remaining 39 percent of activity was spread across other sectors.
Performance across sectors remained largely negative. Refineries emerged as the only major out performer, advancing 5.5 percent during the week. The Food sector declined 0.6 percent, while Commercial Banks and Automobile Assemblers each lost 2.5 percent.
The Power sector fell 2.6 percent. Exploration and Production companies lost 2.8 percent, Pharmaceuticals and Chemicals each declined 2.9 percent, while Cement and Engineering sectors fell 3.2 percent. Fertilizer stocks retreated 3.4 percent, Technology & Communication declined 3.6 percent, Textile Composite slipped 4.1 percent, and Oil Marketing Companies recorded the steepest decline among major sectors, losing 5.1 percent.
Despite the broader market weakness, a handful of stocks posted gains. YOUW emerged as the top performer, rising 8.9 percent to Rs5.60, followed by CNERGY which gained 4.9 percent to Rs10.29. PGLC advanced 4.3 percent to Rs15.91, Attock Refinery (ATRL) increased 2.2 percent to Rs919.68, Nestlé Pakistan rose 1.8 percent to Rs7,752.21, Pioneer Cement (PIOC) added 1.3 percent, while Ghani Glass (GHNI) gained 1.2 percent during the week.
On the losing side, SSGC suffered the steepest decline, plunging 14.1 percent to Rs24.85. SNGPL fell 8.6 percent, KTML lost 8.2 percent, LOTCHEM declined 7.9 percent, Maple Leaf Cement dropped 7.7 percent, Kohat Cement retreated 7.5 percent, while HGFA lost 7.2 percent.
Analysts said investor sentiment is likely to remain sensitive to developments in the Middle East, particularly movements in international oil prices and shipping routes, while market participants will also closely monitor domestic macroeconomic indicators, foreign inflows, and progress on external financing as key determinants of market direction in the coming weeks.
Copyright Business Recorder, 2026