Strong remittances and auto sales provide support as investors monitor geopolitical developments and corporate earnings
The KSE-100 Index closed the week at 180,104 points, down 1,325 points or 0.73% week-on-week, as continued uncertainty over the cessation of hostilities between the United States and Iran weighed on investor sentiment.
The market remained sensitive to geopolitical developments, with investors adopting a cautious stance despite positive developments across several key economic indicators. Average daily traded volume increased 14% WoW to 853.3 million shares, while average traded value rose 13% to $137 million, indicating relatively strong market participation.
Sector-wise, the largest negative contributions came from Power, which shed 445 points, followed by Technology with 236 points, Cement with 234 points, Investment Banks with 172 points and Insurance with 59 points. In contrast, Refinery stocks provided the strongest positive contribution of 297 points. Oil and Gas Exploration added 159 points, Leather and Tanneries contributed 76 points, miscellaneous companies added 63 points and Fertiliser stocks gained 17 points.
On the scrip front, HUBC was the biggest drag, contributing a negative 435 points, followed by LUCK with 188 points, ENGROH with 173 points and SYS with 159 points. UBL also contributed negatively by 122 points.
Among the leading positive contributors, HBL added 280 points, PPL gained 214 points, POL contributed 127 points, CNERGY added 84 points and SRVI gained 76 points.
On the macroeconomic front, workers’ remittances increased 13% YoY and 5% MoM to $3.6 billion in July, compared with $3.2 billion in June. Pakistan Remittance Account (RDA) gross inflows reached $13.647 billion by July 2026, with $2.118 billion repatriated and $6.603 billion utilised locally.
Automobile sales also remained strong, rising 80% YoY and 13% MoM to 19,800 units in July. However, central government debt increased 7.4% YoY to Rs83.4 trillion by June 2026.
Oil production declined 3.4% WoW to 68.2 kbopd, while gas output rose 4% to 2,939 mmcfd. The rupee strengthened 0.04% WoW to Rs277.7 per US dollar. The budget deficit stood at Rs3.313 trillion.
Looking ahead, market direction is expected to remain influenced by geopolitical developments and corporate earnings. The KSE-100 is currently trading at a price-to-earnings ratio of 8.1 times, offering a dividend yield of 6.2%.