KARACHI: The Pakistan Stock Exchange (PSX) finished marginally higher in the outgoing week as value-hunting emerged after concerns over disruptions to Saudi oil supplies eased, despite continued volatility stemming from the deteriorating situation in the Middle East, which pushed Brent crude prices to a four-month high of $109.07 per barrel.
According to Arif Habib Ltd (AHL), the benchmark KSE-100 index gained 372 points, or 0.22 per cent, to close at 170,885 points, up from 170,512 points a week earlier.
The market remained under pressure during the first half of the week after Yemeni Houthi attacks on Saudi Arabia’s East-West Pipeline pushed crude oil prices higher, noted Topline Securities. Sentiment improved towards the end of the week as oil prices retreated and fears of immediate disruptions to Saudi supplies faded.
According to AKD Securities Ltd, the attacks forced the closure of a key export route, while the subsequent easing in oil prices helped the KSE-100 recover.
Index recovers early losses after oil prices ease as supply fears recede
Analysts said the market remained sensitive to geopolitical developments and diplomatic activity surrounding the Middle East conflict.
Average daily trading volume stood at 452.3 million shares, falling 29.2pc week-on-week, while average traded value fell 23pc to $74.9m.
Among sectors, exploration and production companies contributed 299 points to the index, followed by banks with 214 points, miscellaneous companies with 211 points, cement with 132 points and pharmaceuticals with 51 points.
Negative contributions came from automobile assemblers, which shed 154 points; fertiliser companies, 113 points; technology, 109 points; investment banks, 63 points; and oil marketing companies, 36 points.
Pakistan Petroleum led positive scrip-wise contributions with 236 points, followed by Pakistan Services Ltd with 225 points, United Bank with 124 points, Pakistan Oilfield with 118 points and Bank Alfalah with 99 points. National Bank was the largest negative contributor, taking 179 points off the index, followed by Pakistan Telecommunication Company, Fauji Fertiliser, Oil and Gas Development Company and Ghandhara Industries Ltd.
On the macroeconomic front, the State Bank of Pakistan kept its policy rate unchanged at 11.5pc, with seven of the 10 members of the Monetary Policy Committee voting in favour. The committee noted that the intensifying Middle East conflict had pushed already elevated global commodity prices higher and that supply-chain disruptions persisted.
The current account deficit narrowed sharply to $98 million in August, from $445m in July and $324m in August 2025. Meanwhile, Pakistan’s trade deficit widened 15.1pc year-on-year to $3.3bn in August, as exports fell 5.2pc to $2.5bn while imports increased 10.6pc to $5.8bn.
Net foreign direct investment rose 77pc month-on-month and 80pc year-on-year to $316m in August. During the first two months of FY27, net FDI rose 24pc year-on-year to $494m, up from $399m in the same period last year.
Technology exports rose 17pc year-on-year to $394m in August, but fell 6pc month-on-month. Auto sales, covering cars, light commercial vehicles, vans and jeeps, increased 11pc year-on-year but fell 21pc month-on-month to 15,558 units.
Auto financing rose 33.8pc year-on-year to a record Rs393bn in August, from Rs294bn a year earlier, and increased 1.8pc month-on-month.
The country’s foreign exchange reserves held by the SBP increased by $3.061bn during the week ending Sept 11 to a record $21.4bn after receiving proceeds from the Eurobond issuance. The increase was the largest weekly rise since June 27, 2025, according to AHL.
The rupee appreciated marginally by 0.03pc, closing at Rs277.25 against the dollar, compared with Rs277.32 a week earlier. Yields on three- and six-month Treasury bills declined by 21 and 20 basis points to 11.38pc and 11.70pc, respectively, at the latest auction.
Oil production fell 1.4pc week-on-week to 67,500 barrels per day, mainly due to lower output from Makori East and Pasakhi. Gas production fell 2.6pc to 3,008 million cubic feet per day.
Other developments included the government’s plan to retire Rs3.6 trillion in gas-sector circular debt under an IMF programme, efforts to expand Pakistan’s $30bn currency swap arrangement with China, a 19pc increase in cotton arrivals to 2.4m bales and approval of a Rs75bn fuel-relief subsidy scheme.
AHL said the market’s direction would remain sensitive to developments in the US-Iran conflict and to diplomatic meetings on the sidelines of the United Nations General Assembly.
AKD Securities said that strengthening economic indicators could support the market, while the upcoming IMF review was likely to remain an important near-term event. It also noted that any easing in international oil prices could provide relief, and that the market was trading at a forward price-to-earnings ratio of 7.3 times.
Published in Dawn, September 20th, 2026
