KARACHI: The Pakistan Stock Exchange (PSX) remained cautious and range-bound during the week ended September 25, 2026, as persistent geopolitical uncertainty and shifting domestic political developments constrained investor risk appetite.
The benchmark KSE-100 Index eased by 119.37 points, or 0.1 percent, to close at 170,765.22 points.
The BRIndex100 opened the week at 18,781.90 points and closed slightly higher at 18,805.41 points, registering a modest increase over the course of the week. Its total weekly turnover stood at 2.554 billion shares.
The BRIndex30, meanwhile, opened the week at 68,278.52 points before slipping to close at 68,118.64 points. The index recorded total weekly turnover of 1.504 billion shares.
The market’s marginal weekly decline came despite some relief from international oil prices and a reduction in domestic petroleum prices, while investors also monitored the formal commencement of discussions between Pakistan and the International Monetary Fund (IMF) for the fourth review under the ongoing USD7 billion Extended Fund Facility (EFF).
The review is considered important for the potential disbursement of the fifth tranche of about USD1 billion. At the same time, the Asian Development Bank (ADB) lowered its forecast for Pakistan’s Gross Domestic Product (GDP) growth for Fiscal Year 2027 to 3.7 percent from its earlier projection of 4.5 percent, adding to the mixed macroeconomic backdrop.
International oil prices provided some respite during the week, with Brent crude averaging approximately USD103.10 per barrel, down 2.2 percent week-on-week. The decline brought some relief after a prolonged period of increases in international crude prices and helped break a sequence of five consecutive weekly increases in domestic fuel prices.
Reflecting the softer international oil market, the federal government reduced domestic petroleum prices during the week. The price of Motor Spirit, commonly known as petrol, was cut by Rs1.51 per litre to Rs389.28 per litre from Rs390.79 per litre previously. The reduction in High-Speed Diesel (HSD) prices was considerably larger, with the price falling by Rs12.80 per litre to Rs412.12 per litre from Rs424.92 per litre.
On the external financing front, Pakistan secured total gross foreign loans of USD4.7 billion during the first two months of Fiscal Year 2027. The inflows provided continued support to the country’s balance-of-payments position. At the same time, profit and dividend repatriations by multinational corporations and foreign institutional investors declined by 13.4 percent year-on-year during the same period to USD557 million.
The country’s liquid foreign exchange reserves held directly by the State Bank of Pakistan remained stable at USD21.4 billion. The stability in SBP-held reserves provided an element of support to the external account position during the week, although investors continued to monitor the progress of IMF discussions and other external financing flows.
However, the macroeconomic outlook also contained a cautionary element as the Asian Development Bank reduced its FY27 GDP growth forecast for Pakistan to 3.7 percent from 4.5 percent previously. The downward revision highlighted the continuing challenges surrounding the pace of economic expansion even as the country’s external liquidity position remained supported by foreign financing and reserves.
Developments in the energy sector also remained prominent during the week. Four of Pakistan’s five domestic oil refineries formally executed upgrade agreements with the government under the Refining Policy. The agreements are expected to unlock estimated capital expenditure investments of USD6 billion over the next five years, marking a significant development for the country’s domestic refining infrastructure.
In the domestic debt market, the federal government raised Rs181 billion through the primary auction of Pakistan Investment Bonds (PIBs). Investor bidding resulted in an increase in yields ranging from 20 to 75 basis points across different maturity tenors, indicating upward movement in demanded returns in the sovereign debt market.
The Refinery sector dominated market participation, accounting for 21 percent of total trading volume. Technology and Communication followed with an 18 percent share, while Investment Banks accounted for 12 percent. Miscellaneous companies represented 10 percent of total market volume, followed by engineering companies with 6 percent. All other sectors collectively contributed the remaining 33 percent of market participation.
The sectoral performance reflected a distinctly mixed picture, with strong gains in refinery and engineering stocks offset by substantial selling pressure in power generation and distribution companies and declines in several other major sectors.
The Refinery sector posted the strongest weekly performance, surging 5.6 percent week-on-week. Engineering companies gained 1.9 percent, while Oil and Gas Marketing Companies advanced 1.3 percent. Textile Composite stocks rose 0.5 percent, while the Fertilizer sector also added 0.5 percent. Cement stocks increased 0.3 percent, whereas Pharmaceuticals edged up 0.1 percent during the week.
On the other side of the market, Power Generation and Distribution companies faced the heaviest pressure, with the sector declining 4.3 percent week-on-week. Chemical stocks fell 1.9 percent, while Technology and Communication companies contracted 1.4 percent. Automobiles declined 0.8 percent and Commercial Banks slipped 0.6 percent. Oil and Gas Exploration Companies eased 0.4 percent, while Food and Personal Care companies declined 0.3 percent.
At the individual stock level, Attock Refinery Limited emerged as the strongest gainer among the listed KSE-100 constituents, rising 4.6 percent during the week to close at Rs1,145.35 per share. International Industries Limited followed with a 4.5 percent increase, ending at Rs169.42 per share.
Engro Fertilisers Limited gained 3.7 percent to close at Rs195.27, while HUM Network Limited also advanced 3.7 percent to Rs10.30. AGP Limited rose 3.5 percent to Rs158.76, while TRG Pakistan Limited gained 3.5 percent to Rs52.47. The Searle Company Limited rounded out the major gainers, appreciating 3.4 percent to finish at Rs82.43 per share.
The declining side of the market was led by Ibrahim Fibres Limited, which fell 11.7 percent week-on-week to Rs251.57 per share. Pakistan Services Limited declined 11.1 percent to Rs1,148.97, while K-Electric Limited also dropped 11.1 percent to Rs6.06.
Despite the limited movement in the benchmark index, overall market capitalisation declined marginally during the week. Total PSX market capitalisation stood at Rs18.996 trillion, equivalent to USD68.54 billion, compared with Rs19.038 trillion, or USD68.67 billion, in the preceding week. This represented a contraction of 0.2 percent in both rupee and dollar terms.
The increase in trading activity was more pronounced in the ready market. Average daily turnover in the readyboard market rose 48.2 percent week-on-week to 670.21 million shares from 452.25 million shares in the preceding week.
In value terms, average daily readyboard trade value increased 7.7 percent to Rs22.37 billion, equivalent to USD80.70 million, compared with Rs20.77 billion, or USD74.92 million, previously.
Analysts say overall the week ended with the PSX benchmark showing only a marginal decline, but the underlying market witnessed substantial shifts in participation and sectoral performance. They show that the future trend in the market heavily depends upon the geo- political situation of the region and the outcome of the IMF-Pakistan talk over the next tranche.
Copyright Business Recorder, 2026