KARACHI: The Pakistan Stock Exchange (PSX) remained volatile during the outgoing week, with the KSE-100 index closing largely flat as uncertainty over the US-Iran conflict kept oil prices elevated and weighed on investor sentiment. Meanwhile, an International Monetary Fund (IMF) staff mission arrived for talks with Pakistani authorities for the release of tranches under two ongoing programmes.

According to Arif Habib Ltd (AHL), volatility in crude oil prices and heightened Middle East tensions kept investors cautious. The KSE-100 closed at 170,765 points, down 120 points, or 0.1 per cent, from the previous week’s 170,885 points. Hopes of progress in US-Iran talks and softer oil prices supported the market early in the week, but renewed geopolitical concerns and rising oil prices subsequently reversed those gains.

A major development, Topline Securities noted, was the signing of long-awaited upgrade agreements by four of the country’s five oil refineries — Attock Refinery Ltd (ATRL), Pakistan Refinery Ltd (PRL), National Refinery Ltd (NRL) and Cnergyico PK. The agreements, signed with Inter State Gas Systems (Pvt) Ltd under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, envisage around $5 billion in investment over the next five years.

The investment is aimed at modernising refining capacity, increasing production of cleaner Euro-V fuels and reducing furnace-oil output.

PSX remains volatile as US-Iran tensions, IMF review and refinery upgrades dominate investor sentiment

Average daily trading volume stood at 670.2m shares, up 48.2pc week-on-week, with average value traded at $80.7m, up 7.7pc.

Among sectors, fertiliser stocks contributed 171 points to the index, followed by exploration and production companies with 120 points, oil marketing companies with 100 points, refineries with 89 points and investment banks with 87 points. Banking stocks exerted the biggest drag, subtracting 366 points, followed by miscellaneous companies at 141 points, power at 140 points, technology at 103 points and auto parts at 24 points.

Engro Fertiliser was the largest positive contributor among individual stocks, adding 151 points, followed by Habib Bank, Attock Refinery, PSO and Pakistan Petroleum. Pakistan Services Ltd was the largest negative contributor, followed by MCB Bank, National Bank, Systems Ltd and K-Electric.

AKD Securities noted that global energy markets remained unsettled amid the US-Iran conflict and mixed signals at the United Nations General Assembly session in New York. Brent crude settled 1pc higher week-on-week at $104.9 a barrel.

Domestically, power generation increased 5.1pc year-on-year to 14,943 gigawatt-hours in August, the third-highest August output on record, supported by higher hydel, coal, gas and wind generation. Average generation cost, however, rose amid a greater reliance on RLNG and furnace oil and elevated international oil prices.

Oil production increased 1.4pc week-on-week to 68,500 barrels per day, mainly owing to higher output from Makori East, Maramzai and Mardankhel.

Gas production fell 2.5pc to 2,934 million cubic feet per day, reflecting lower output from Mari, Uch, Kandhkot and Shewa.

The country’s oil and gas reserves stood at 3,720m barrels of oil equivalent in June, with oil reserves rising 15pc year-on-year to 276m barrels and gas reserves increasing 9pc to 20,664 billion cubic feet. Newly discovered fields added 53.5m barrels of oil and 773bn cubic feet of gas.

Pakistan’s total liquid foreign exchange reserves rose 0.07pc week-on-week to $26.8bn as of Sept 18. Reserves held by the State Bank of Pakistan increased to $21.4bn, while commercial banks’ reserves stood at $5.41bn. Import cover remained at 3.03 months.

Petroleum prices were mixed under the latest daily pricing mechanism. High-speed diesel fell Rs11.92 per litre week-on-week to Rs412.12, while petrol increased marginally by 14 paise to Rs389.28. The rupee appreciated 0.03pc to Rs277.16 against the dollar.

Other developments included a 0.7pc week-on-week decline in broad money supply to Rs44 trillion as of Sept 11 and an acceleration in weekly inflation to 11.92pc year-on-year for the week ended Sept 24.

AKD Securities said the IMF review remained a key near-term market catalyst, while developments in US-Iran talks and international oil prices would continue to influence sentiment.

The KSE-100 was trading at a forward price-to-earnings ratio of about 7.2 times, according to the brokerage.

Published in Dawn, September 27th, 2026