Pakistan’s benchmark index gained 0.2% during the week as easing crude oil prices and improving regional sentiment helped offset early selling pressure.
Pakistan’s benchmark KSE-100 Index closed the week broadly flat, gaining 0.2%, as easing crude oil prices and improving sentiment towards regional developments helped the market recover from pressure seen earlier in the week.
The market remained under pressure during the first half of the week following heightened regional tensions after the Houthi attack on Saudi Arabia. Concerns over potential disruptions to oil supplies weighed on investor sentiment and kept trading volatile.
Sentiment improved towards the latter part of the week as crude oil prices weakened, easing concerns over prolonged disruptions to global supply. Expectations of renewed US-Iran diplomatic engagement also provided support to the market.
KSE-100 Recovers on Easing Oil Concerns
In the final session, the KSE-100 Index gained 1.09% to close at 170,885, supported by continued weakness in crude oil prices amid easing supply concerns.
Saudi Arabia’s efforts to restore its damaged East-West pipeline also contributed to improving sentiment, with expectations that the restoration could help ease supply pressures.
FFC, UBL, MEBL, LUCK and HBL were the leading positive contributors in the session, collectively adding 833 points to the index.
Trading activity remained active, with total volume reaching 575 million shares, while traded value stood at approximately PKR22 billion.
Economic Indicators Support Market Focus
Several key economic developments shaped investor attention during the week.
Pakistan’s net foreign direct investment (FDI) rose to US$316 million in August 2026, increasing 77% month-on-month and 80% year-on-year.
The Real Effective Exchange Rate (REER) edged up to 107.92 in August from 107.89 in July, while the current account deficit narrowed substantially to US$98 million, compared with US$445 million in July and US$324 million in August 2025.
Meanwhile, auto-sector data showed PAMA-reported car sales at 15,558 units in August, down 21% month-on-month but up 11% year-on-year.
Trading Activity
Average daily traded volume during the week stood at 452 million shares, while average daily traded value was approximately PKR21 billion.
The week’s performance reflected a balance between geopolitical risks and improving external conditions, with investors continuing to monitor oil prices, regional developments and Pakistan’s economic indicators for further direction.