KARACHI: The Pakistan Stock Exchange (PSX) recorded its strongest weekly rally in nearly six months, with the benchmark KSE-100 Index surging 7,477.44 points, or 4.5 percent week-on-week, to close at 173,886.69 points.
A sharp decline in international oil prices following Iran’s reported openness to diplomatic talks to end the ongoing war eased concerns over domestic inflation and external account pressures, encouraging investors to return to equities and triggering broad-based buying.
The decline in international oil prices was a key development during the week. Brent crude closed at USD98.50 per barrel, compared with the previous week’s average of approximately USD115.50 per barrel. The difference of USD17 per barrel represented a substantial easing in the international benchmark from the preceding week’s average.
The reduction in international oil prices was also reflected in domestic petroleum price adjustments. The federal government reduced the price of Motor Spirit (MS), commonly known as petrol, by Rs.25.32 per litre to Rs.352.59 per litre. High-Speed Diesel (HSD) prices were cut by Rs.20.71 per litre to Rs.382.25 per litre. The reductions provided relief at the retail level, with the petrol price adjustment larger than the cut in diesel prices.
The combination of lower international oil prices, reduced domestic petroleum prices and a moderation in headline inflation helped ease some of the concerns surrounding energy costs and the external account.
However, other developments in the energy sector indicated that domestic cost pressures had not disappeared entirely, with the Central Power Purchasing Agency-Guarantee (CPPA-G) seeking an electricity tariff increase and the Oil and Gas Regulatory Authority (OGRA) notifies 15.3 percent increase in Re-gasified Liquefied Natural Gas (RLNG) prices.
On the external account front, liquid foreign exchange reserves held directly by the State Bank of Pakistan (SBP) increased by USD39 million to USD21.56 billion. The increase provided a modest improvement in the central bank’s reported reserve position during the week. The Federal Finance Minister also stated that the country’s external accounts remained in a comfortable position.
As per the reports, in discussions with the International Monetary Fund (IMF), the lender urged Pakistan to further broaden its tax base. The recommendation placed tax-base expansion among the fiscal policy issues under consideration. Separately, the Chairman of the Federal Board of Revenue (FBR) indicated that the government intended to abolish the super tax.
In an development, according to the latest Ministry of Finance data, total public debt rose by Rs.6.20 trillion during Fiscal Year 2026 to reach Rs.91.00 trillion, equivalent to USD328.64 billion. The increase highlighted the expansion in the government’s total public debt over the fiscal year.
Meanwhile, Trading activity across listed sectors was led by Chemicals, which accounted for 18 percent of total market volume during the week. The Refinery sector followed with an 11 percent share, while Investment Banks and Technology and Communication each represented 10 percent. Commercial Banks contributed 6 percent, and all other sectors collectively accounted for the remaining 44 percent.
Cement led the reported sectoral gainers, advancing 6.6 percent week-on-week. Power Generation and Distribution rose 4.2 percent, while Engineering gained 4.0 percent. Commercial Banks and Textile Composite each advanced 3.8 percent, and Pharmaceuticals increased 3.7 percent.
Fertilizer stocks gained 3.1 percent, while Technology and Communication also rose 3.1 percent. Oil and Gas Exploration Companies (E&Ps) advanced 2.1 percent, and Automobiles moved up 1.9 percent. Oil Marketing Companies (OMCs) recorded a smaller increase of 0.9 percent, while Chemicals rose 0.7 percent and Food and Personal Care products edged up 0.3 percent.
Individual stock performance within the KSE-100 Index also reflected strong buying momentum, particularly in cement-related shares. Pakistan Services Limited (PSEL) led the gainers, surging 26.7 percent week-on-week to close at Rs.1,248.07 per share.
Pioneer Cement Limited (PIOC) advanced 12.5 percent to Rs.262.29, while D.G. Khan Cement Company Limited (DGKC) also gained 12.5 percent, closing at Rs.200.41 per share.
On the declining side, Cnergyico PK Limited (CNERGY) led the reported losers, falling 11.3 percent week-on-week to close at Rs.12.10 per share. Attock Refinery Limited (ATRL) declined 9.8 percent to Rs.982.16, reflecting the weakness in the broader Refinery sector. Nestle Pakistan Limited (NESTLE) declined 2.1 percent to Rs.6,899.58, while Mehmood Textile Mills Limited (MEHT) dropped 2.0 percent to Rs. 125.46.
Total PSX market capitalisation increased by 2.8 percent during the week to Rs.18.909 trillion, equivalent to USD68.35 billion. In the preceding week, market capitalisation stood at Rs.18.389 trillion, or USD66.45 billion. The increase amounted to approximately Rs.520.26 billion in local-currency terms, while the US-dollar valuation rose by USD1.90 billion.
The Business Recorder benchmark indices also recorded gains during the week. BRIndex100 opened at 18,262.41 points and closed higher at 19,126.67 points, registering an increase of 864.26 points from its opening level. Total weekly turnover in the index amounted to 2.586 billion shares.
BRIndex30 opened the week at 65,029.33 points and advanced to close at 67,561.99 points, gaining 2,532.66 points from its opening level. Total weekly turnover stood at 1.627 billion shares.
Looking ahead analysts say, market sentiment for the coming week is expected to remain positive and buoyant, supported by Brent crude prices falling below USD99 per barrel, headline inflation easing and strong buying interest in heavy-weight equities. Investors are also expected to monitor corporate earnings announcements and policy developments concerning tax reforms and energy tariff adjustments.
Copyright Business Recorder, 2026